Deutsche Bank Cuts Price Target and EPS Estimates on Groupon, Inc. (GRPN); Beat Less Sustainable
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Price: $11.47 +8.21%
Rating Summary:
13 Buy, 17 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
13 Buy, 17 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Deutsche Bank maintains a 'Hold' on Groupon, Inc. (NASDAQ: GRPN) price target cut from $21 to $15.
Analyst, Lloyd Walmsley, said, "We reduce our PF operating income ests on Groupon despite solid headline 1Q results. Despite strong net revs and lower marketing expense, much of the profit beat came from lower marketing that we see as less likely to continue. Coming in at 21% of net revs, in line with mgmt’s long-term goal of 20%, we assume marketing expense grows from here. In addition, COGS continues to grow faster than net revenues (potentially as a result of higher refund accruals) and SG&A came in much higher than our ests. We increase net revs but reduce PF operating income and maintain our Hold rating on the shares."
"We now estimate 2Q net revs/PF op profit/PF EPS of $572mn/$67mn/$0.03 versus our previous $533mn/$73mn/$0.03 est. For 2012, we forecast net revs/PF
profits/PF EPS $2.37bn/$318mn/$0.16 from our previous est. of $2.26bn/$343mn/$0.18. We forecast 2013 est of net revs/PF profits/PF EPS of $3.17bn/$633mn/$0.60 from $3.03bn/$753mn/$0.71."
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 $11.74 yesterday.
Analyst, Lloyd Walmsley, said, "We reduce our PF operating income ests on Groupon despite solid headline 1Q results. Despite strong net revs and lower marketing expense, much of the profit beat came from lower marketing that we see as less likely to continue. Coming in at 21% of net revs, in line with mgmt’s long-term goal of 20%, we assume marketing expense grows from here. In addition, COGS continues to grow faster than net revenues (potentially as a result of higher refund accruals) and SG&A came in much higher than our ests. We increase net revs but reduce PF operating income and maintain our Hold rating on the shares."
"We now estimate 2Q net revs/PF op profit/PF EPS of $572mn/$67mn/$0.03 versus our previous $533mn/$73mn/$0.03 est. For 2012, we forecast net revs/PF
profits/PF EPS $2.37bn/$318mn/$0.16 from our previous est. of $2.26bn/$343mn/$0.18. We forecast 2013 est of net revs/PF profits/PF EPS of $3.17bn/$633mn/$0.60 from $3.03bn/$753mn/$0.71."
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 $11.74 yesterday.
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