Deutsche Bank On Orbitz; Sees Modest Upside Potential

In a research note released Monday, Deutsche Bank analyst Lloyd Walmsley initiated a Hold rating on Orbitz Worldwide OWW amid what it calls “Turbulence.”

The firm also issued an $8 12-month price target. The firm sees modest upside potential from some of the company's key initiatives.

Some of its key initiatives include growing the business through its loyalty program (many companies have offered similar rewards), building its international business in more fragmented hotel markets (primarily international), improving conversion and economics and affiliate partnerships.

The bank also believes that the following offset the opportunities to grow listed above: consolidation, increasing competition in marketing channels and scaling disadvantages versus larger peers.
Shares of the company closed Monday up 1.75 percent, or $0.13, to $7.56. Within six months, shares have skyrocketed 12.17 percent.