Needham & Company Reiterates a 'Buy' on Zipcar (ZIP); Utilization Checks Suggest 4Q11 Upside; Entry Point Attractive

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

Needham analyst says, "Based on our analysis of ~4,000 Zipcar vehicles, we believe better than expected utilization should drive revenue ahead of expectations. We estimate the 4Q11 weighted average utilization for Zipcar was 56.7%, down from the weighted average of 60% in 3Q11. We estimate the decline in utilization of only 3.3% sequentially is favorable versus expectations for a 7.2% sequentially revenue decline. A 3.3% sequential revenue decline would result in revenue above the high-end of management’s 4Q11 $64 million guidance. Our 4Q11 revenue estimate is $63.3 million, slightly above consensus of $63.1 million and guidance mid-point of $63 million."

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 $14.05 yesterday.

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