Goldman Sachs Reiterates Neutral Rating, $11.50 PT on Zipcar on Updated Estimates

In a report published Friday, Goldman Sachs reiterated its Neutral rating and $11.50 price target on Zipcar ZIP. Goldman Sachs noted, “Before market open on Friday, February 15, ZIP reported revenue of $70.7mn, slightly above both our forecast of $69.8mn and consensus of $69.9mn, but adjusted corporate EBITDA of $6.3mn was light of our $7.0mn forecast. The main driver of this miss was fleet-related costs which were 5% above our estimate. Member growth of 15.5% yoy was below our 18% forecast. Additionally, Hurricane Sandy had a roughly $1.0mn impact to earnings. Our 2013-2014 EBITDA estimates are unchanged at $24.2mn and $38.6mn, respectively. We introduce our 2015 EBITDA estimate of $53.0mn. Given its announced acquisition by Avis Budget, we do not expect the quarterly results to be a driver of stock price.” Zipcar closed on Thursday at $12.24.