Barrington Says 'The Sky Isn't Falling' on Groupon (GRPN); Potential to Significantly Exceed Estimates
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Price: $6.97 +0.43%
Rating Summary:
4 Buy, 18 Hold, 7 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
4 Buy, 18 Hold, 7 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade GRPN Now!
Barrington Research maintains a 'Outperform' on Groupon, Inc. (NASDAQ: GRPN) price target of $8.00 (from $17.00).
Analyst, Jeffrey L. Houston, said, "We realize that the stock is well below our initiation target price and there is no near-term catalyst given European macro/operational issues, as well as model uncertainty due in part to the success of Groupon Goods. However, the company has a well recognized brand, the No. 1 market share in most of its 46 countries, is growing revenue over 40%, generates a lot of free cash flow, and is trading at an attractive valuation (CY/12 EV/Rev of 1.1x and EV/FCF of 7.1x). There is more upside potential than downside risk at the current price, in our view."
Houston lowers FY12 revenues from $2.417B to $2.380B, but EPS raised from $0.21 to $0.22.
For an analyst ratings summary and ratings history on Groupon, Inc. click here. For more ratings news on Groupon, Inc. click here.
Shares of Groupon, Inc. closed at $7.55 yesterday, with a 52 week range of $6.35-$31.14.
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Analyst, Jeffrey L. Houston, said, "We realize that the stock is well below our initiation target price and there is no near-term catalyst given European macro/operational issues, as well as model uncertainty due in part to the success of Groupon Goods. However, the company has a well recognized brand, the No. 1 market share in most of its 46 countries, is growing revenue over 40%, generates a lot of free cash flow, and is trading at an attractive valuation (CY/12 EV/Rev of 1.1x and EV/FCF of 7.1x). There is more upside potential than downside risk at the current price, in our view."
Houston lowers FY12 revenues from $2.417B to $2.380B, but EPS raised from $0.21 to $0.22.
For an analyst ratings summary and ratings history on Groupon, Inc. click here. For more ratings news on Groupon, Inc. click here.
Shares of Groupon, Inc. closed at $7.55 yesterday, with a 52 week range of $6.35-$31.14.
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