Oppenheimer Cuts Target On Zipcar (ZIP), Says Post Q4 Sell-Off Overdone
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Price: $4.21 -18.57%
Rating Summary:
2 Buy, 7 Hold, 0 Sell
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
2 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Oppenheimer slashed its price target on Zipcar (NASDAQ: ZIP) from $32 to $24 but maintained its Outperform rating following the the 14% sell-off after reporting 4Q results. While 4Q results exceeded on margins, 1Q and FY guidance disappointed Street expectations.
"We believe the disappointment is entirely due to its acquired UK operations, which recently transitioned to Zipcar's systems, as well as overall UK macro weakness," the analyst states. "Core US metrics remain strong, with established market revenue and member growth of 22% y/y, and profits up 50% y/y. Mobile now 49% of reservations. Lowering 2012 EBITDA/EPS; 2013 estimates unchanged."
For an analyst ratings summary and ratings history on Zipcar click here. For more ratings news on Zipcar click here.
Shares of Zipcar closed at $13.84 yesterday.
"We believe the disappointment is entirely due to its acquired UK operations, which recently transitioned to Zipcar's systems, as well as overall UK macro weakness," the analyst states. "Core US metrics remain strong, with established market revenue and member growth of 22% y/y, and profits up 50% y/y. Mobile now 49% of reservations. Lowering 2012 EBITDA/EPS; 2013 estimates unchanged."
For an analyst ratings summary and ratings history on Zipcar click here. For more ratings news on Zipcar click here.
Shares of Zipcar closed at $13.84 yesterday.
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