Hudson Securities Reiterates Its Buy Rating & Raises The PT On Wyndham Worldwide

Wyndham Worldwide WYN beat on the EPS line, but fell short on EBITDA as seasonality and f/x issues hit vacation exchange and rental results. WYN kept its promises in 2010. It generated $600 million of free cash flow and spent it on dividends, buybacks, and acquisitions. According to Hudson, the 2011 outlook was fine. Yesterday's sell-off was overdone. WYN remains a compelling value, especially given the timeshare valuation benchmark created by the recent P/E acquisition of Silverleaf. Hudson reiterates its Buy rating and is taking the admittedly bold move of raising its price target to $48, 62% above yesterday's close and $10 higher than its last PT. Hudson Securities has increased our 2011 EBITDA estimate to $969 million from $945 million. It increased its lodging EBITDA estimate by 5%, VER by 1%, and vacation ownership by 3%. Hudson's 2011 EPS goes to $2.18 from $2.08. WYN is trading lower at $29.67