UPDATE: Goldman Sachs Upgrades Zipcar to Buy on Earnings Stability Confidence

Goldman Sachs raised its rating on Zipcar ZIP from Neutral to Buy and increased its price target from $8 to $8.75. Goldman Sachs said, "We upgrade shares of Zipcar, the world's leading car sharing company, to Buy from Neutral and raise our 12-month price target to $8.75 from $8.00 implying 24% upside potential given our greater confidence in forward earning stability and also raise our M&A premium to 2 from 3. We view this as a high-risk, high-reward contrarian call. However, with expectations low as earnings have been revised downwards throughout 2012 and bearish positions still significant in the name (short interest is 23% of float), we think the stage is set for ZIP to outperform." Zipcar closed at $7.03 on Monday.