Despegar.com initiated with an Overweight at Cantor Fitzgerald

Cantor Fitzgerald initiated coverage of Despegar.com with an Overweight rating and $11 price target. Despegar.com, a distribution channel for more than 240 airlines, 660,000 hotels, and 1,260 car rental agencies, should be able to drive a 15% revenue compound annual growth rate in its business, at a minimum, due to its ability to increase market share given its growing breadth of inventory and successful loyalty programs, the analyst tells investors in a research note. The firm, which says that Despegar’s valuation is very attractive, expects its free cash flow to improve and believes that Despegar will reach 60% conversion in the medium-term and exceed 70% over the long-term.