Movers and SHAKERS
Initiating Coverage; A Compelling Play On The Travel Industry Recovery
Travelzoo is a US-based company which acts as a publisher of travel and entertainment offers. The company informs a varied number of members in Asia Pacific, Europe, and North America, as well as millions of website users, about the best travel, entertainment and local deals available from various companies. It provides travel, entertainment, and local businesses in a flexible manner to the various customer. The company operates in three geographic segments namely Asia Pacific, Europe, and North America. Travelzoo derives its revenue through advertising fees including listing fees paid by travel, entertainment, and local businesses to advertise their offers on company's media properties. Most of the company's revenue is derived from the North America.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
A different kind of travel company. Travelzoo is a media company wedded to the travel industry. We anticipate a long tail travel advertising recovery, which should take shape later this year. Unlike business travel, which may be forever changed by Covid, Travelzoo is a compelling advertising recovery play on leisure travel. We believe that there is pent up demand for leisure travel given a strong favorable responses to travel vouchers with price promotions and no change fees.
Financially capable of weathering the crisis. As of June 30, the company had $25.5 million in cash and virtually no debt. The company benefited from an influx of cash from the sale of travel vouchers. We believe that the company will swing toward free cash flow in the fourth quarter and build upon its strong financial position in 2021 and 2022 ...
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.