Benchmark Raises PT On Travelzoo To $66

Benchmark has published a research report on Travelzoo, Inc. TZOO after the company experienced a 27% hike in stock valuation since March 15. In the report, Benchmark writes "Travelzoo (TZOO) stock has appreciated 27% since March 15 versus the NASDAQ up 1%, likely on the prospects of its blossoming Local Deals unit and recent publicity regarding a potential Groupon IPO which could value the local daily deals leader at as much as $25 billion. The US Daily Deal or Group Buying market could grow 138% in 2011 according to a report by Local Offer Network. We suspect that Travelzoo's Local Deals has ramped nicely this quarter and may flourish in 2011. We raise our 2011E EPS from $1.20 to $1.22 to reflect the momentum building in Local Deals." Benchmark maintains its Buy rating and has raised the price target from $54 to $66. Travelzoo closed yesterday at $57.26.