Reasons For Our Upward Revision Of Travelzoo’s Stock Price Estimate
We recently upgraded Travelzoo’s stock prices by ~30% shortly after the company’s Q2 2016 earnings results. Travelzoo’s transition in its business model with the introduction of a hotel booking platform in 2014, marked the company’s shift of focus from discounted and push-based travel deals to pull or demand-based services. Though the hotel booking platform witnessed lackluster demand initially, it is steadily growing currently and hence, Travelzoo reacquired its Asia Pacific business last year to expand the hotel platform’s reach. Though Travelzoo’s Q2 2016 results followed the previous few quarters’ trend of year-on-year decline in the top line, the company’s bottom line recovered significantly in the same period with a 140% y-o-y increase in net income to $2 million. We believe Travelzoo’s recovery has just begun and the company is going to grow further in the future. With that view in mind we’ve revised some of the important parameters in the Travelzoo model and that, in turn, has resulted in the upgradation of our stock price estimate for Travelzoo.
As a result of these revisions, we estimate Travelzoo’s revenues will reach $160 million (as against our old forecast of $149 million) by the end of our review period, reflecting a CAGR of ~1.5% between 2015 to 2023.
Have more questions about Travelzoo? See the links below.
- What Is Travelzoo’s Fundamental Value On The Basis Of Its Forecasted 2015 Results?
- How Has Travelzoo’s Revenue And EBITDA Composition Changed Over 2012-2016E?
- Travelzoo: Year 2015 In Review
- How Has Travelzoo’s Stock Performed In The Last Five Years?
- What Drove Travelzoo’s Revenue Growth And Led To Its EBITDA Decline Over The Last Five Years?
- How Have Travelzoo’s Different Segments Performed Over The Last 5 Years?
- Travelzoo Q1 2016 Earnings Results
- Travelzoo’s Expected Revenue And EBITDA For 2016: Trefis Estimate
- How Is Travelzoo’s Travel Related Business Expected To Grow In The Next 5 Years?
- How Do We See Travelzoo’s Top Line Trending?
- Travelzoo’s Q2 2016 Results Show Strong Bottom Line Recovery
Notes:
- Why Did Travelzoo’s Stock Grow Despite Only Modest Revenue Growth?
- Could Travelzoo’s Stock Rise By 50% Post COVID-19 Crisis?
- How Does Travelzoo Make Money?
- Why Has Travelzoo’s Stock Price See-Sawed So Much Since Early 2018?
- Can Travelzoo End Fiscal 2018 On a Strong Note?
- What Is TripAdvisor’s Revenue And EBITDA Breakdown?
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