UPDATE: Goldman Sachs Downgrades Zipcar to Neutral Following Acquisition

Goldman Sachs reduced its rating on Zipcar

from Buy to Neutral while raising its price target from $8.75 to $11.50 and removing shares from its Conviction List. Goldman Sachs commented, "Before market open on Tuesday, January 2, 2013, Avis Budget Group announced its intention to acquire Zipcar for $12.25 per share in cash. The total transaction value is $500mn. The acquisition price represents a 49% premium over Zipcar's December 31, 2012 closing price of $8.24. Avis anticipates the transaction would close in Spring 2013. Following the announcement of this proposed transaction, we downgrade ZIP to Neutral as the stock is trading above our revised price target." Zipcar closed at $8.24 on Monday.