Travelzoo stock price target lifted to $25 by Ascendiant Capital

Published 30/05/2025, 11:46
Travelzoo stock price target lifted to $25 by Ascendiant Capital

On Friday, Ascendiant Capital raised the price target on Travelzoo stock to $25.00 from the previous $24.00, while reaffirming their Buy rating. The adjustment reflects the firm’s confidence in the company’s prospects, citing execution of its long-term plan and a robust travel industry rebound as key factors for potential share price growth. According to InvestingPro data, the stock has shown strong momentum with a 74% return over the past year, despite a recent 33% decline over the last six months. The company’s current market valuation appears attractive based on InvestingPro’s Fair Value analysis.

According to Ascendiant Capital’s analysis, Travelzoo’s current valuation is attractive, and the updated 12-month price target is based on an estimated price-to-earnings (P/E) multiple of approximately 15 times the firm’s 2026 earnings per share (EPS) projection of $1.64. This EPS estimate is considered by the analyst to represent the company’s long-term growth rate. The company currently trades at a P/E ratio of 13x, with impressive gross profit margins of 86%. InvestingPro analysis reveals several additional positive indicators, including strong financial health metrics and robust shareholder returns.

The firm’s positive stance is underpinned by a belief that Travelzoo’s strategic initiatives and the positive growth outlook for the travel industry will contribute to the company’s share price appreciation over the long term. The analyst highlighted the balance between the company’s high growth potential and the risks involved, suggesting that the new price target captures the large upside opportunities available to Travelzoo. Analyst targets currently range from $17 to $35, with InvestingPro research reports offering comprehensive analysis of the company’s growth prospects and financial health, which is rated as GREAT based on multiple factors.

Ascendiant Capital’s commentary underscores a strong conviction in Travelzoo’s ability to benefit from the long-term trends in the travel sector. The firm’s maintained Buy rating and the increased price target signal to investors that Travelzoo’s shares may offer a worthwhile opportunity based on their projections.

The raised price target from Ascendiant Capital comes as the travel industry continues to recover and evolve following the challenges posed by global events in recent years. Travelzoo’s efforts to capitalize on this rebound and its strategic planning are recognized as key drivers for its anticipated growth and share price performance.

In other recent news, Travelzoo reported its Q1 2025 earnings, achieving an earnings per share (EPS) of $0.25 and revenue of $23.1 million, both aligning with analyst expectations. This revenue marks a 5% increase year-over-year and represents the company’s highest quarterly revenue since the pandemic. The company has highlighted strong performance in North America and Jack’s Flight Club, with the latter experiencing a 13% increase in premium subscribers. Despite a 34% year-over-year decrease in operating income due to investments in member growth, Travelzoo remains focused on accelerating revenue through strategic marketing and innovation. Analysts have noted the company’s strategic investments in member acquisition and new product innovations as key drivers for future growth. Travelzoo projects doubled year-over-year revenue growth for Q2 2025, with expectations of continued acceleration in subsequent quarters. The company also addressed challenges such as decreased interest from Canadian travelers to the US and market hesitation, while emphasizing its efforts to convert legacy members to paid club members.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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