Needham & Company Maintains a 'Buy' on Zipcar (ZIP); Improving Utilization and Cost Controls Lead to Profitability Ahead of Expectations

Needham & Company maintains a 'Buy' on Zipcar (NASDAQ: ZIP) price target of $25.00.

Needham analyst says, "Zipcar achieved profitability in 3Q11 ahead of expectations, and on inline revenue. We believe the company achieved profitability on solid revenue growth and higher vehicle utilization and cost controls. The slower 4Q11 revenue is due to typical seasonality and the integration of Streetcar Ltd. With the Streetcar integration complete, we expect revenue to reaccelerate in 1Q12. We are encouraged by Zipcar’s improved profitability, which we believe is sustainable in 2012."

For more ratings news on Zipcar click here and for the rating history of Zipcar click here.

Shares of Zipcar closed at $19.63 yesterday.

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