FBR Research Upgrades Wyndham Worldwide (WYN) to Outperform

October 29, 2009 7:04 AM EDT

FBR Research upgrades Wyndham Worldwide (NYSE: WYN) to Outperform. Price target $23.

FBR analyst says, "Following yesterday's lackluster stock performance (stock is down over 10% from recent highs) despite strong results and an outlook that was much stronger than we expected, we are upgrading our rating on shares of WYN to Outperform. We believe the CEO has done a solid job over the past year of sowing the seeds for a much more focused company (on both revenues and costs plus longer-term vision) than WYN was when it spun out of Cendant three years ago. Additionally, we credit the company with providing a much greater degree of disclosure in its financial statements. More detail is a positive, as it will make it easier for investors who are new to WYN to understand the various business models."

"We assign a 12-month price target of $23 (up from our previous target of $15) and do not believe we have to stretch our target multiples in our sum-of-the-parts analysis to get share price upside (unlike with MAR and HOT, where we would have to stretch the multiples to get upside from these levels). In addition to "attractive valuation," we like the company for several other reasons...No EPS guidance was provided; however, we estimate the implied EPS range is approximately $1.53-$1.70 versus consensus of $1.47."

To see more analyst ratings on WYN Click Here.

Wyndham Worldwide Corporation provides various hospitality products and services to individual consumers and business customers.

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