Benchmark Downgrades Travelzoo (TZOO) to Hold, Says Overly Reflecting Local Deals
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Price: $8.58 -8.04%
Rating Summary:
6 Buy, 2 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
6 Buy, 2 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Benchmark downgraded Travelzoo (NASDAQ: TZOO) from Buy to Hold with a $66 price target, saying the stock is overly reflecting local deals.
The firm notes the stock is up 73% versus the NASDAQ up 4%, likely on the prospects of its blossoming Local Deals unit, a potential Groupon IPO and LivingSocial's capital raise.
Analyst Frederick W. Moran said, "While we remain confident that Travelzoo's Local Deals has ramped nicely so far this year and may flourish in 2011, we fear that the stock may have overly reflected the potential contribution from Local Deals too quickly. Similar to the pullback that followed the in-line 4Q10 EPS report, we suspect TZOO stock may temporarily correct around the time of the 1Q11 EPS report which should be released within weeks."
For more ratings news on Travelzoo click here and for the rating history of Travelzoo click here.
Shares of Travelzoo closed at $77.88 yesterday.
The firm notes the stock is up 73% versus the NASDAQ up 4%, likely on the prospects of its blossoming Local Deals unit, a potential Groupon IPO and LivingSocial's capital raise.
Analyst Frederick W. Moran said, "While we remain confident that Travelzoo's Local Deals has ramped nicely so far this year and may flourish in 2011, we fear that the stock may have overly reflected the potential contribution from Local Deals too quickly. Similar to the pullback that followed the in-line 4Q10 EPS report, we suspect TZOO stock may temporarily correct around the time of the 1Q11 EPS report which should be released within weeks."
For more ratings news on Travelzoo click here and for the rating history of Travelzoo click here.
Shares of Travelzoo closed at $77.88 yesterday.
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