Zacks Investment Research downgraded shares of Wyndham Worldwide Corp. (WYN) from OUTPERFORM to NEUTRAL on September 24, 2013, with a target price of $65.00.
We are reverting to a Neutral recommendation on Wyndham from Outperform. We believe that the positive impact of the strong second-quarter 2013 results, the company's increased earnings guidance, a strong developmental pipeline, significant international exposure and transition to a greater fee-for-service-based business are reflected at the current level and there is little room for further upside. Further, excessive exposure to the sluggish European economy and slowdown in business momentum owing to budget sequestration in North America can act as headwinds. Although, these regions have started witnessing improvements, they are yet to reach pre-crisis levels. Expansion into low RevPAR regions and brands, especially in emerging markets, can also keep international RevPAR under pressure in the future.
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