UPDATE: Deutsche Bank Initiates Coverage On Travelport Worldwide On Capitalizing Beyond Air Opportunities

In a report published Tuesday, Deutsche Bank analyst Ashish Sabadra initiated coverage on Travelport Worldwide Ltd TVPT with a Buy rating and $17.00 price target. In the report, Deutsche Bank noted, “We are initiating coverage on Travelport (TVPT), a leading global travel commerce platform and B2B Travel payment provider (eNett), with a Buy rating and $17 target price. 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.” Travelport Worldwide closed on Tuesday at $15.32.