JP Morgan Comments on Hertz Rebranding

Hertz HTZ announced that it is rebranding its “car-sharing service to ‘Hertz On Demand,'” J.P. Morgan reports. “Although the initiative is indicative of HTZ's interest in growing its car-sharing program, we do not expect a material impact to Zipcar ZIP in the near term,” J.P. Morgan writes. “We believe the market is still significantly underpenetrated, providing potential for solid growth from all participants, and Hertz is still growing off of a small membership base, which is less than 10% of the size of ZIP's membership. First take: neutral.” Zipcar closed Tuesday at $23.54; Hertz closed Tuesday at $15.34.