Nomura Securities Maintains a 'Neutral' on Orbitz Worldwide (OWW); Q4 Review

February 17, 2012 11:24 AM EST Send to a Friend
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Price: $8.44 +0.48%

Rating Summary:
    6 Buy, 15 Hold, 2 Sell

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Today's Overall Ratings:
    Up: 14 | Down: 28 | New: 51
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Nomura Securities maintains a 'Neutral' on Orbitz Worldwide (NYSE: OWW) price target raised from $2.50 to $3.25.

Analyst, Brian Nowak, said, "Orbitz reported 4Q:11 adjusted EBITDA of $30.1m, slightly below us at $31.2m and consensus at $30.5mn. 4Q:11 revenue of $177m was in line, but performance varied by region as domestic revenue came in 9% ahead of us (or $11m), but international revenue was 19% below us (or $12m). OWW expects 2012E EBITDA growth in the high-single to low double digits, vs. us previously at 5% and the Street at 8%. As such, we are raising our full-year 2012 EBITDA estimate by $2.5m to $136m. EBITDA growth will be back-half weighted, due to the timing of the American Express private label deal. OWW’s international bookings were much weaker than expected. Int’l bookings grew only 5% constant currency, missing our 32% growth by 2,700bp. OWW’s domestic results were better than expected, with air bookings declining 5% (vs. us at -6%) and non-air bookings up 4% (vs. us at flat). We continue to have our concerns about Orbitz’s asset mix, though the recent improvements in domestic hotels and stand-alone eBooker hotels are positives. That said, the int’l growth story from 2011 is now slowing and the benefits of the private label business will not kick in until late 2H:12."

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

Shares of Orbitz Worldwide closed at $2.93 yesterday.


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