UPDATE: J.P. Morgan Reiterates Neutral Rating, Lowers PT on Zipcar

In a report published Wednesday, J.P. Morgan & Co. reiterated its Neutral rating on Zipcar ZIP, but slightly lowered its price target from $13.00 to $12.25. J.P. Morgan noted, “We are trimming our price target slightly to $12.25, from $13.00, to match Avis Budget Group's all cash bid for ZIP. Our estimates are unchanged. Maintain Neutral. Avis is acquiring ZIP for $12.25 per share (~$500 million), all cash. The acquisition is expected to close in spring 2013. There is a deal termination fee of $16.8 million. Based on our 2013 forecast, Avis is paying approximately 1.8 times EV/sales, and about 23.7 times EV/EBITDA.” Zipcar closed on Monday at $12.19.