Market Overview

UPDATE: Benchmark Company Reiterates Hold Rating, Lowers PT on Travelzoo

Share:
Related TZOO
Movers Alert: Travel Sector Reacts To Expedia/Orbitz Deal
Stocks Hitting 52-Week Lows

In a report published Monday, Benchmark Company reiterated its Hold rating on Travelzoo (NASDAQ: TZOO), but lowered its price target from $24.00 to $20.00.

Benchmark noted, “On Friday, Travelzoo announced preliminary 3Q12 results which fell well short of expectations. Management stated that the primary driver of the shortfall was due to the “hotel search offering and groupbuying voucher model not meeting the needs of hotels and users well enough, and therefore (we) plan to adjust our product offering”. While we had warned that the core travel business could be pressured by moderating global demand and cannibalization from Getaways, it now appears evident that Getaways growth and the advertising model are being pressured by increasing competition from other intermediaries and direct connect platforms. Furthermore, we had incorrectly assumed that investment spending would come in below expectations given the early stages of the re-acceleration plan.”

Travelzoo closed on Friday at $20.02.

Latest Ratings for TZOO

DateFirmActionFromTo
Oct 2014BenchmarkMaintainsHold
Jul 2014BenchmarkMaintainsHold
Apr 2013Ascendiant CapitalMaintainsNeutral

View More Analyst Ratings for TZOO
View the Latest Analyst Ratings

Posted-In: Benchmark CompanyAnalyst Color Price Target Analyst Ratings

 

Related Articles (TZOO)

Around the Web, We're Loving...

Get Benzinga's Newsletters

Our Experts vs. S&P 500Powered by Benzinga
Marketfy Products Return S&P 500
Morning Profit Maker 42.72% 6.69%
The Option Prophet 91.14% 6.69%
SecretCaps 26.55% 6.69%
Short-Term Trend Trading 11.89% 6.69%
View the highest rated products→