Deutsche Raises Price Target on Groupon (GRPN), Ups Estimates on New Outlook
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Price: $9.71 -0.61%
Rating Summary:
13 Buy, 17 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
Rating Summary:
13 Buy, 17 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
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Despite missing the street's earnings expectations for the fourth quarter, Deutsche Bank is maintaining its Hold rating on shares of Groupon, Inc. (NASDAQ: GRPN) and is raising its price target from $21 to $22.
The firm highlights the company's total revenues were solid as they topped both the Street's and it's own estimates. Gross billing of $1.25 billion also was 4 percent higher than the firm was originally anticipating.
Although revenues were strong, the gross profit dollars per customer fell from $29 in the first quarter to $15 in the fourth quarter. An analyst at the firm highlights, "we think it needs to turn positive to show improved customer activity. We are modeling gross profit per customer to improve in Q1/Q2 at this point."
The firm raised its Q1 revenue and EPS estimates from $473 million and $0.01 to $528 million and $0.06. Deutsche also raised its FY12 revenues and EPS estimates from 2.11 billion and $0.22 to $2.27 billion and $0.36.
For FY13, the firm lifted its revenue and EPS estimates from $0.2.871 billion and $0.72 to $3.07 billion and $0.75.
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 $24.58 yesterday.
The firm highlights the company's total revenues were solid as they topped both the Street's and it's own estimates. Gross billing of $1.25 billion also was 4 percent higher than the firm was originally anticipating.
Although revenues were strong, the gross profit dollars per customer fell from $29 in the first quarter to $15 in the fourth quarter. An analyst at the firm highlights, "we think it needs to turn positive to show improved customer activity. We are modeling gross profit per customer to improve in Q1/Q2 at this point."
The firm raised its Q1 revenue and EPS estimates from $473 million and $0.01 to $528 million and $0.06. Deutsche also raised its FY12 revenues and EPS estimates from 2.11 billion and $0.22 to $2.27 billion and $0.36.
For FY13, the firm lifted its revenue and EPS estimates from $0.2.871 billion and $0.72 to $3.07 billion and $0.75.
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 $24.58 yesterday.
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