Update: Goldman Sachs Raising Price Target On Wyndham Worldwide Corp. (WYN)

Goldman Sachs is raising its price target on shares of Wyndham Worldwide Corp. (NYSE: WYN) to $36 from $34, and it has a Neutral rating after the company reported earnings.

In a note to investors, Goldman writes, "Wyndham continues to do a solid job increasing its cash flow and improving efficiencies in all of its segments. However, while we expect meaningful free cash flow generation over the next several years and note that the company trades at a discount to other names within our coverage, we remain Neutral for a couple of reasons. First, the company is moving back towards selling to new customers, which is more unprofitable than selling to existing customers. While this is necessary to sustain the business it may be a result of the company having reached a limit in selling to some of its owners. Second, while financing rates are attractive now it seems Wyndham has an increasing propensity to finance timeshare purchases for its customers, which was one of the biggest issues the company had during the downturn. This should increase the cash flow for the company, but it would also increase the risk."

At last check, shares of WYN are up 11 cents to $34.39, a gain of 0.35%.