UPDATE: J.P. Morgan Upgrades Zipcar to Overweight

J.P. Morgan is out with its report today on Zipcar (NYSE: ZIP), upgrading ZIP from Neutral to Overweight.

In a note to clients, J.P. Morgan writes, "We are upgrading ZIP to Overweight from Neutral based on valuation. After pricing its IPO at $18 on 4/13, the stock climbed as high as $31.50 on 4/14 but has since declined 38.6% (S&P 500 down 1.9%). We believe the pullback offers investors an opportunity to invest in an early-stage, EBITDA profitable, fast-growth leader in a multi-billion-dollar market. Our estimates are unchanged. Price target remains $29.50."

Shares of ZIP closed Thursday at $19.35, down 3.35% from Wednesday's close.