Wedbush Starts Orbitz Worldwide (OWW) at Neutral, Expedia (EXPE) & Priceline (PCLN) Likely to Grow Faster
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Price: $11.92 --0%
Rating Summary:
5 Buy, 15 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
5 Buy, 15 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush initiates coverage on shares of Orbitz Worldwide Inc. (NYSE: OWW) with a Neutral rating and $3 price target.
The company is is the fourth largest online travel agency and receives roughly 75 percent of their revenues from the U.S. and 35 percent from air travel. The firm believes that the company will have a hard time adapting to changes in the industry due to a majority of its ownership being by Travelport.
Wedbush notes that the company's customer base and supplier base will likely drive growth over time. They also feel that OWW will continue to grow as the travel industry continues to grow from its 2008 and 2009 lows.
An analyst at Wedbush comments, "We do expect Orbitz’s share price to increase over the long term as it rebounds from recent financial struggles, but because we believe that its OTA competitors, Expedia (Nasdaq: EXPE) and Priceline (Nasdaq: PCLN), will grow at a faster and consistent rate than Orbitz, we believe that those stocks may be better investment alternatives."
The firm released its 2011 and 2012 EPS estimates at $0.04 and $0.12. Its revenue estimates for the two years are $768 million and $830 million.
For more ratings news on Orbitz Worldwide Inc. click here and for the rating history of Orbitz Worldwide Inc. click here.
Shares of Orbitz Worldwide Inc. closed at $2.64 yesterday.
The company is is the fourth largest online travel agency and receives roughly 75 percent of their revenues from the U.S. and 35 percent from air travel. The firm believes that the company will have a hard time adapting to changes in the industry due to a majority of its ownership being by Travelport.
Wedbush notes that the company's customer base and supplier base will likely drive growth over time. They also feel that OWW will continue to grow as the travel industry continues to grow from its 2008 and 2009 lows.
An analyst at Wedbush comments, "We do expect Orbitz’s share price to increase over the long term as it rebounds from recent financial struggles, but because we believe that its OTA competitors, Expedia (Nasdaq: EXPE) and Priceline (Nasdaq: PCLN), will grow at a faster and consistent rate than Orbitz, we believe that those stocks may be better investment alternatives."
The firm released its 2011 and 2012 EPS estimates at $0.04 and $0.12. Its revenue estimates for the two years are $768 million and $830 million.
For more ratings news on Orbitz Worldwide Inc. click here and for the rating history of Orbitz Worldwide Inc. click here.
Shares of Orbitz Worldwide Inc. closed at $2.64 yesterday.
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