Orbitz Worldwide: We Opt To Stay On The Sidelines, Says Cantor Fitzgerald
In a research note released yesterday, Cantor Fitzgerald analyst Naved Khan maintained a Hold rating on Orbitz Worldwide (OWW) and increased his price target to $10 (from $9), on the heels of the company’s second-quarter results, which were in line with OWW’s pre-announcement in mid-July, with reported revenue of $248.1M (+10% Y/Y) vs. FactSet consensus’ $245.5M.
Khan wrote, “2Q results show that Orbitz is successfully assembling key pieces (loyalty, a compelling mobile offering) that in combination can potentially help drive sustainable growth in top line and profitability (via repeat buying, new customer acquisition, and cross-selling). While results to-date show progress on these initiatives and good execution by management, organic revenue growth is likely to lag near term as the company drives this shift. We opt to stay on the sidelines”.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Naved Khan has a total average return of 24.8% and a 77.8% success rate. Khan is ranked #130 out of 3213 analysts.
To read more rating news on OWW click here.