Evercore Partners Cuts PT on Groupon (GRPN) to $4.30

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Evercore Partners cut its price target on Groupon, Inc. (NASDAQ: GRPN) from $5 to $4.30 while reiterating a Underweight rating. The firm said the bottom-line miss overshadowed a meaningful volume beat. They also noted margin trends are worrisome, contracting 1000 bps Q/Q to 52%.

Analyst Ken Sena comments, "Underweight Rating Remains as Groupon's business remains in flux with greater signs of margin deterioration. Nevertheless, we see its better - than - expected 3P billings as encouraging, particularly in North America, where newer initiatives (i.e., Local Marketplace / Deal Bank, Mobile) are having effect, despite the lower economics to Groupon involved. Our newly lowered target of $4.30 (from $5.00) implies that Groupon should trade at 8x EBITDA, exclusive of SBE, on our 2013 estimates."

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 $5.98 yesterday, with a 52 week range of $2.60-$20.50.

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