Travelzoo's Business Model Reimagined Post-Pandemic: Analyst Upgrades Stock

Barrington Research analyst James C.Goss upgraded Travelzoo TZOO from Market Perform to Outperform with a price target of $10.
A positive byproduct of the harsh impact of the pandemic on travel was the potential to rethink some business model aspects, said the analyst.
The benefit has begun to manifest itself in Travelzoo’s North American operations over the past couple of quarters, and the analyst sees an improving potential in Europe as well in coming quarters.
The analyst noted the management’s continued effort to highlight important attributes of its member base that make its services a valuable outlet for travel operators to advertise against.
Improved rates of profitability even beyond the added marketing expenditures involved in growing the subscriber base should facilitate higher levels of profitability, added the analyst.
The analyst thinks Travelzoo META is nearing the time in which it will establish its presence.
With several favorable developments now coming more clearly into view and two-quarters of favorable results being reported, the analyst thinks the Outperform rating is justified.
The analyst said the investment rating presumes a recovery in leisure travel from exceptionally depressed levels beginning with local markets and ultimately extending to international travel.
Price Action: TZOO shares are trading higher by 6.59% at $7.44 on the last check Friday.

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