Travelzoo initiated with a Buy at Litchfield Hills

Litchfield Hills analyst Theodore O’Neill initiated coverage of Travelzoo with a Buy rating and $35 price target. The analyst believes the company’s plan to institute paying memberships “will be a hit.” Travelzoo converted to a hybrid advertising and paid membership model last year but delayed until January 2025 collecting fees for members who joined on or before December 31, 2023, the analyst tells investors in a research note. The firm believes revenue from paying members “will be transformative” for Travelzoo.