Analyst 'Skeptical' About Travelzoo (TZOO) Rumor; Would Be a Seller Above $27/Share
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Price: $6.68 -0.3%
Rating Summary:
7 Buy, 2 Hold, 0 Sell
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
7 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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According to Bloomberg's First Word service, Benchmark's Daniel Kurnos has said he is "skeptical" about an earlier rumor Travelzoo (Nasdaq: TZOO) could be a takeover target.
Still the analyst offered a guess at fair value for the company. He said 12x the company's 2012 EBITDA estimate would imply a stock price around $34. This valuation is similar to peers in the ecommerce sector.
Kurnos sees Google (Nasdaq: GOOG) and Amazon (Nasdaq: AMZN) as two likely strategic buyers of the company. The analyst believes a private-equity buyer would not pay much over the stock's current price around $26. He said he would recommend selling shares if the rumor doesn't look legitimate and the stock pushes over $27 as he is concerned with limited upside amid the upcoming first-quarter results.
Benchmark maintains a Neutral rating and $30 price target on Travelzoo.
Shares of Travelzoo have rallied about 27 percent amid the rumor.
Still the analyst offered a guess at fair value for the company. He said 12x the company's 2012 EBITDA estimate would imply a stock price around $34. This valuation is similar to peers in the ecommerce sector.
Kurnos sees Google (Nasdaq: GOOG) and Amazon (Nasdaq: AMZN) as two likely strategic buyers of the company. The analyst believes a private-equity buyer would not pay much over the stock's current price around $26. He said he would recommend selling shares if the rumor doesn't look legitimate and the stock pushes over $27 as he is concerned with limited upside amid the upcoming first-quarter results.
Benchmark maintains a Neutral rating and $30 price target on Travelzoo.
Shares of Travelzoo have rallied about 27 percent amid the rumor.
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