UBS Maintains a 'Neutral' on Orbitz Worldwide (OWW); 2012 Should be Better, Increasing PT

UBS maintains a 'Neutral' on Orbitz Worldwide (NYSE: OWW) price target raised from $3 to $4.

UBS analyst says, "We're forecasting -9% US bookings growth in 4Q, which is reflective of the obstacles the OTAs continue to face relating to higher airfares and tighter air inventory. For international, we estimate 20% bookings growth. We forecast the high-end of guidance for revenue and adj. EBITDA ($173 million & $32 million, respectively), which gets us to $0.04 EPS in the qtr, $0.03 ahead of consensus."

"Our 2012 EPS est of $0.26 for Orbitz is well ahead of $0.18 consensus. While Orbitz continues to face a tough air inventory environment, we don’t think our 1% bookings growth forecast this year is aggressive. Although it’s hard to quantify the profit benefit related to Orbitz’s advanced analytics initiative, they do have private label deals (AMEX) to look forward to in 2H12 as well as a re-platformed Orbitz brand early this year. Ultimately, we think consensus est. will shade higher."

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 $4.01 yesterday.

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