Barclays Maintains an 'Equalweight' on Orbitz Worldwide (OWW); Early Platform Payoff Leads to Positive 3Q

Barclays maintains an 'Equalweight' on Orbitz Worldwide Inc. (NYSE: OWW) price target of $3.50.

Barclays analyst says, "Orbitz reported 3Q11 results that were slightly ahead of ours and Street expectations across most metrics including revenue and EBITDA. A faster shift towards Int'l Bookings led to revenue +4% Y/Y, and coupled with solid cost control led to a nice EBITDA beat. While 4Q guidance was a bit light, OWW provided encouraging commentary around its platform transition and new private labels deals which should account for >10% of future revenue/EBITDA when implemented. While OWW remains a laggard across the online travel agencies and is overexposed to the lower growth/ lower margin Air & Domestic segments, we believe it is making solid progress in shifting its business towards Hotel & Int'l and is already seeing dividends from its platform transition."

"As the result of a positive 3Q, we are slightly raising our numbers. Our 2012E gross bookings/revs/PF EPS go to $12.1B/$809M/$0.48 and our PT goes to $3.50 on ~7x our new 2012E EPS."

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 $2.75 yesterday.

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