UPDATE: Piper Jaffray Downgrades Orbitz Worldwide to Underweight

Piper Jaffray published a research report on Orbitz Worldwide OWW that downgraded the stock from Neutral to Underweight based on the company's lost ground to competitors. In the report, Piper Jaffray wrote, "Q3 results were mixed with bookings below consensus for both domestic & international, but EBITDA was ahead of estimates. Guidance for Q4 is well below consensus for bookings & EBITDA. The company continues to lag peers in diversification toward hotel & international. While Orbitz should be a beneficiary of the same secular tailwinds as others (PCLN, EXPE) in the space, the company is having difficulty capitalizing. Therefore we are downgrading to Underweight and lowering our price target to $1.75. We have reduced our target multiple from 4.5x to 3.5x 2013E EV/EBITDA to account for the inability of Orbitz to maintain share in the category and difficulty in shifting mix to non-air based bookings." Piper Jaffray also lowered the price target from $3.50 to $1.75 on Orbitz Worldwide, which is currently trading down 11.54 percent from Tuesday's $2.60 closing price.