UPDATE: Travelzoo (TZOO) PT Lowered to $18 at Ascendiant Capital, Maintains Buy Citing Current Valuation, Says Outlook Setup for Rebound

Ascendiant Capital analyst Edward Woo lowered the price target on Travelzoo (NASDAQ: TZOO) to $18.00 (from $20.00) while maintaining a Buy rating.

The analyst comments "Major cost cuts improves profitability: Travelzoo’s “substantial” expense reductions in 2020 and its divestiture of its money losing Asia business in Q1 2020 will position it to generate much higher profitability as revenue returns. Long term positive: We believe that execution of its long term plan, a strong rebound/long term travel industry, history of strong recoveries for the travel industry after negative shocks or events, and a positive long-term growth outlook bodes well for its share price to increase longer term. Current valuation attractive: We are maintaining our BUY rating, but lowering our 12-month P/T to $18 from $20, which is based on a 19x P/E multiple on our 2023 EPS estimate of $0.94 which we estimate is its near term EPS growth rate. "

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