Travelzoo (TZOO – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Patrick Sholl from Barrington maintained a Buy rating on the stock and has a $17.00 price target.
Patrick Sholl has given his Buy rating due to a combination of factors that highlight Travelzoo’s potential for growth despite current challenges. The company is transitioning to a paid membership model, which is expected to provide a revenue boost, although initial costs may pressure margins. This shift is seen as a strategic move to attract advertisers by offering a more engaged member base, which could enhance advertising revenue.
Although recent revenue figures fell short of expectations, particularly in Europe, the North American market remains robust, and the company anticipates improvement in the upcoming quarters. Travelzoo’s efforts to expand its subscriber base, coupled with strategic share repurchases, indicate a commitment to strengthening its business model. Despite the aggressive risk profile, these factors contribute to a positive outlook, justifying the Buy rating with a revised price target of $17.
According to TipRanks, Sholl is a 2-star analyst with an average return of 1.9% and a 38.71% success rate. Sholl covers the Communication Services sector, focusing on stocks such as IMAX, Cinemark Holdings, and Clear Channel Outdoor.
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