(RTTNews) - Thursday, FBR Capital Markets upgraded Wyndham Worldwide Corp. (WYN: News ) shares to Outperform from Market Perform and increased its price target to $23 from $15. The brokerage raised its 2009 EPS estimate to $1.78 from $1.69, and its 2010 estimate to $1.54 from $1.34.

Analyst Patrick Scholes upgraded the stock to Outperform following October 28 lackluster stock performance, stock is down over 10% from recent highs, despite strong results and an outlook that was much stronger than he expected.

The analyst believes the CEO has done a solid job over the past year of sowing the seeds for a much more focused company, on both revenues and costs plus longer-term vision, than WYN was when it spun out of Cendant three years ago.

Additionally, the analyst credits the company with providing a much greater degree of disclosure in its financial statements. More detail is a positive, as it would make it easier for investors who are new to WYN to understand the various business models.
The analyst assigned a 12-month price target of $23, up from his prior target of $15, and does not believe he has to stretch his target multiples in his sum-of-the-parts analysis to get share price upside, unlike with Marriott International, Inc. (MAR) and Starwood Hotels & Resorts Worldwide Inc. (HOT), where he would have to stretch the multiples to get upside from these levels. In addition to "attractive valuation," the analyst likes the company for several other reasons.

Currently, WYN is up $1.18 or 7.11% and trading at $17.77.

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by RTT Staff Writer

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