Needham & Company Reiterates a 'Buy' on Zipcar (ZIP); Accumulate Shares on Weakness
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Price: $4.70 -0.42%
Rating Summary:
2 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company reiterates a 'Buy' on Zipcar (NASDAQ: ZIP) price target of $25.00.
Analyst, Kerry Rice, said, "We recommend investors take advantage of the share price weakness, which we believe is an over reaction to guidance being modestly below expectations and increased marketing spend. 2Q12 revenue growth guidance exceeded our expectations, but was below consensus, which we deemed overly optimistic given the strong 2Q11. The increased marketing spend was previously included in FY12 guidance and should accelerate subscriber growth and drive incremental profitability." (FY12 EPS estimate raised from $0.13 to $0.14 and FY13 from $0.27 to $0.33)
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 $12.33 yesterday.
Analyst, Kerry Rice, said, "We recommend investors take advantage of the share price weakness, which we believe is an over reaction to guidance being modestly below expectations and increased marketing spend. 2Q12 revenue growth guidance exceeded our expectations, but was below consensus, which we deemed overly optimistic given the strong 2Q11. The increased marketing spend was previously included in FY12 guidance and should accelerate subscriber growth and drive incremental profitability." (FY12 EPS estimate raised from $0.13 to $0.14 and FY13 from $0.27 to $0.33)
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 $12.33 yesterday.
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