Wedbush Comments on Travelzoo's (TZOO) Growth and Potential, Maintains Buy Rating and $107 PT
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Price: $7.14 -1.38%
Rating Summary:
7 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
7 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush is maintaining its Outperform rating and $107 price target on shares of Travelzoo (NASDAQ: TZOO) as the company's local deals business increased 28 percent from April.
The company generated roughly $3 million in net revenues in May, which is ahead of its April and March figures of $2.3 million and $2.6 million. The company added 27 additional cities in May which now brings the total to 90 with 39 in the U.S. and 51 internationally.
Competition remains relatively high still in the industry, but the firm notes that TZOO's growth has not yet been affected by it and sees the company being in over 100 cities soon.
The firm does not believe Mr. Ralph Bartel's recent activities will have that much of an effect on the company's shares. Mr. Bartel was the founder of the company and remains the controlling share holder with over 9 million shares. He recently sold 800 thousand shares and filed a Form 144 to sell up to 3 million shares in total.
Wedbush comments, "though we acknowledge it is difficult to assign comparable valuation metrics given the differences of the companies, the absolute values imply a high comparable valuation. We note that due to lack of company guidance and limited analyst coverage, earnings estimates are volatile and vary significantly partly explaining the variance to our estimates."
The firms current 2011 and 2012 EPS estimates are $1.48 and $1.70 which is well below the Street's estimates of $1.63 and $2.34.
For more ratings news on Travelzoo click here and for the rating history of Travelzoo click here.
Shares of Travelzoo closed at $70.16 yesterday.
The company generated roughly $3 million in net revenues in May, which is ahead of its April and March figures of $2.3 million and $2.6 million. The company added 27 additional cities in May which now brings the total to 90 with 39 in the U.S. and 51 internationally.
Competition remains relatively high still in the industry, but the firm notes that TZOO's growth has not yet been affected by it and sees the company being in over 100 cities soon.
The firm does not believe Mr. Ralph Bartel's recent activities will have that much of an effect on the company's shares. Mr. Bartel was the founder of the company and remains the controlling share holder with over 9 million shares. He recently sold 800 thousand shares and filed a Form 144 to sell up to 3 million shares in total.
Wedbush comments, "though we acknowledge it is difficult to assign comparable valuation metrics given the differences of the companies, the absolute values imply a high comparable valuation. We note that due to lack of company guidance and limited analyst coverage, earnings estimates are volatile and vary significantly partly explaining the variance to our estimates."
The firms current 2011 and 2012 EPS estimates are $1.48 and $1.70 which is well below the Street's estimates of $1.63 and $2.34.
For more ratings news on Travelzoo click here and for the rating history of Travelzoo click here.
Shares of Travelzoo closed at $70.16 yesterday.
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