Benchmark Maintains a 'Buy' on Orbitz Worldwide (OWW); Q1 Reaffirms Thesis That Turnaround Remains on Track

May 4, 2012 1:48 PM EDT
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Price: $11.92 --0%

Rating Summary:
    5 Buy, 18 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 11
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Benchmark maintains a 'Buy' on Orbitz Worldwide Inc. (NYSE: OWW) price target raised from $5.00 to $6.00.

Analyst, Daniel L. Kurnos, said, "Orbitz Worldwide reported mostly in-line 1Q results. Bookings growth of 6% y/y exceeded consensus expectations of 3% growth, driven by accelerating room-night growth at Orbitz’ domestic leisure brands and eBookers, although revenue of $190 million matched consensus on a modest y/y decline in revenue margin."

"Although 2Q EBITDA guidance of $31-$35 million would also have been below consensus at $39 million after adding back the $2 million shift, management offered FY12 revenue and EBITDA guidance which matched our expectations but exceeded consensus. We believe this reaffirms our stance that the turnaround remains on track and is sustainable, and that the true benefit from the upcoming AmEx (NYSE: AXP)(Not Covered) partnership launch in 3Q was not properly reflected in consensus estimates."

"For 2013, we estimate gross bookings could grow by 6% y/y to $12.8 billion. Net revenue could increase by 11% y/y to $907 million..."

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 $4.07 yesterday.

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