Deutsche Bank Initiates Buy On Shares Of Travelport, Sees 11% Upside For The Stock
In a research note published today, Deutsche Bank analyst Ashish Sabadra initiated a Buy rating on Travelport Worldwide (NYSE:TVPT) with a $17 price target, which represents a potential upside of 11% from where the stock is currently trading.
Sabadra commented, “The Beyond Air segment has delivered roughly mid-teens revenue growth over the last few years and TVPT has guided to 15-20% revenue growth driven by high growth in eNett as well as accelerated growth in Hotel bookings. Although Orbitz and Delta contract will weigh on FY15 ($100m impact on revenues and $45m on EBITDA), we expect TVPT to deliver mid-to-high single-digit growth in the core business with Travel Commerce revenues to grow 7-8% in the mid term, in line with the company’s guidance.”
The analyst continued, “The new management team has stabilized market share and remains well positioned to gain share given its industry leading travel merchandising platform (SmartPoint) with rich content from 50+ airlines, a focus on faster growing emerging markets, partnership with 85 low-cost carriers, and geographically balanced bookings which lowers concentration risk. TVPT has +600k in hotel inventory which includes +500k independent hotel properties (sourced through meta-search engine and APIs) and is well positioned to benefit from accelerated growth in hotel bookings. The HotelZon and Locomote acquisitions position the company well to grow its share in the corporate-direct booking model.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ashish Sabadra has a total average return of 17.1% and a 90% success rate. Sabadra is ranked #863 out of 3358 analysts.