Benchmark Capital Says Strong Positive US Travel Growth On Orbitz (OWW)

Benchmark Capital has a $9 price target and a Buy rating on Orbitz OWW, as it's set to report earnings later in the week. In a research note sent to clients, Benchmark writes, "Orbitz (OWW-Buy, PT $9) could benefit from strong domestic summer travel as evidenced by Expedia's (EXPE-Buy, PT $36) better-than-expected 3Q10 results, announced last Thursday, which were led by a surge in US bookings. We forecast Orbitz will show 3Q10 bookings growth of 13% y/y leading to 6% y/y revenue growth at $197 million as revenue margin should further stabilized having lapped last year's fee cuts. Adjusted EBITDA could rise 4% y/y to $45 million, with adjusted EPS of $0.15." Shares of OWW lost 31 cents yesterday to close at $6.49, a loss of nearly 5%.