** Rental car firm Avis Budget's CAR.O shares up 3.2% to $192.28 on Tues after saying it would receive $650 mln from Pentwater Capital Management after it accused the hedge fund of fueling excess volatility in its stock

** CAR said in an SEC filing late Mon it reached an agreement with Pentwater to settle a pending lawsuit for recovery of short-swing profits; settlement still subject to court approval

** On earnings call in late Apr, CEO Brian Choi said major shareholder Pentwater collected about $1.75 bln in proceeds after offloading 4.3 mln shares over two days when the stock zoomed to record intraday high of $847.70, apparently triggered by a short squeeze

** Choi had said Pentwater acknowledged its sale may have violated SEC rules to prevent insiders and large stockholders from buying and selling shares within a six-month period, and he vowed to "aggressively pursue" all options to recover its gains

** Pentwater still owns about 7.3% of CAR shares, per LSEG data

** JP Morgan raised its PT on CAR from $155 to $170 saying it had anticipated recoveries in $50-$100 mln range, while maintaining its 'underweight' rating

** Incremental capital meaningfully enhances CAR’s strategic flexibility, enabling targeted investments in ancillary growth initiatives (like autonomous fleet management solutions) while reinforcing its competitive positioning in the legacy rental business (including enabling accelerated investments in Avis First), JP Morgan wrote in note to clients

** Of 8 brokerages covering the stock, 6 rate "hold", 2 recommend "sell"; median PT $132.50

** CAR shares now up 50% YTD