Travelzoo Up Nearly 11% As Shorts Cover On Upgrade
Shares of Travelzoo Inc. (NASDAQ: TZOO) are soaring today after news came out that Morgan Keegan had upgraded its rating, and kept the price target.
Analyst Justin Patterson of Morgan Keegan said Travelzoo's Local Deals site is growing "at a faster rate than we had envisioned." He raised his rating on the stock to Outperform from Market Perform, and kept his price target of $101.
"Local Deals could comprise an even greater mix of revenues and drive significant EPS (earnings per share) growth," Patterson said. "The key point is that it doesn't take tremendous changes for Local Deals to accelerate. Management has adopted a clear strategy in the crowded deals market and trends to date speak to its success."
At last check, shares of Travelzoo were trading at $77.94, a gain of $7.46 on nearly 2 million shares, nearly double the average daily volume in the name.
Travelzoo Inc., an Internet media company, publishes travel and entertainment offers from various travel and entertainment companies in North America and Europe.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.