Analysts Warn Competition Eating Orbitz Worldwide's (OWW) Lunch

November 8, 2012 10:31 AM EST
Get Alerts OWW Hot Sheet
Price: $11.92 --0%

Rating Summary:
    5 Buy, 18 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 18 | Down: 17 | New: 10
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Nomura Securities maintained a Neutral rating on Orbitz Worldwide Inc. (NYSE: OWW) and cut its price target to $2.00 (from $3.00).

Commenting on Orbitz Q3 earnings report, analyst Brian Nowak noted that hotel revenue was weaker than expected. He sees Orbitz continuing to losing share within the domestic hotel market, with room night growth rates trailing Expedia (Nasdaq: EXPE) and (Nasdaq: PCLN).

"More troubling, however, OWW's international hotel business began deteriorating in 3Q, with eBookers room night growth 'decelerating' in 3Q to fall below the two larger players," said Nowark.

"PCLN and EXPE are both executing strongly now in Europe, which we believe is impacting OWW's overall growth. This is something to continue to monitor, as it could be an early sign that the accelerating trend toward the two larger OTAs we're seeing in the U.S. is spreading to Europe," concluded the Nomura analyst.

For an analyst ratings summary and ratings history on Orbitz Worldwide Inc. click here. For more ratings news on Orbitz Worldwide Inc. click here.

Shares of Orbitz Worldwide Inc. closed at $2.30 yesterday.

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