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

In a report published Monday, Benchmark Company reiterated its Hold rating on Travelzoo

, 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.