UPDATE: Benchmark Lowers PT on Travelzoo to $80
Benchmark is out with its report today on Travelzoo (NASDAQ: TZOO), lowering its PT from $124 to $80.
In a note to clients, Benchmark writes, "Travelzoo (PT From $124 to $80) reported disappointing 2Q11 results. Net revenue growth of 34% y/y to $38 million fell short of consensus at $40 million, primarily reflecting lower core revenue growth and a lower than estimated take rate for Local Deals. Record headcount growth to drive rapid Local Deals market expansion and a one-time TV marketing test in the US elevated expenses, leading to EBITDA of $8 million, up 26% y/y, and EPS of $0.30, $0.08 below consensus."
Benchmark maintains Buy on TZOO.
At the time of posting, shares of TZOO were trading at $59.74, up 6.67% from Thursday's close.
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