Credit Suisse Assumes Coverage of Orbitz Worldwide At Neutral


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Stephen Ju of Credit Suisse assumed coverage of

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Orbitz Worldwide (NYSE: OWW) on Monday (due to the departure of the primary analyst) with an unchanged Neutral rating and $10.50 price target.“Our investment thesis remains unchanged as Orbitz, the third largest U.S. Online Travel Agency, has proven itself to be one of the few companies in the highly competitive space that can implement best in class technology,” Ju wrote in a note. The analyst adds that Orbitz continues to “re-orient” itself towards the more profitable hotel segment, enabling the company to “at least” maintain market share.Ju notes that Orbitz has “numerous” growth initiatives to create a potential for upside, however visibility on these initiatives is “limited.” The analyst is assuming a “wait-and-see approach” if the company's new loyalty program will drive higher sales and if a new agreement with three Global Distribution Systems (GDS) will provide improved economics and velocity.
Posted In: NewsOnline Travel AgencyOrbitz WorldwideStephen Ju