NEW YORK (TheStreet) -- Orbitz Worldwide (OWW) shares are rising, up 4.7% to $8.50, in early market trading on Tuesday after analysts at UBS AG (UBS) initiated coverage with a "buy" rating and $10 price target.
The firm is impressed with the prospects of the online travel company's hotel bookings business.
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TheStreet Ratings team rates ORBITZ WORLDWIDE INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ORBITZ WORLDWIDE INC (OWW) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow."