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Goldman Sachs Raises Estimates On Groupon (GRPN) after Solid Q4 Results

February 9, 2012 7:24 AM EST
GRPN Hot Sheet
Rating Summary:
    9 Buy, 13 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Goldman Sachs reiterated their Buy rating and $29 price target on Groupon, Inc. (NASDAQ: GRPN) following "solid" Q4 results.

The firm noted 4Q results exceeded consensus by $28 million in billings, $33 million in revenues, and $21 million in CSOI on strong billings growth, a higher-than -expected take rate, and reduced marketing expenditures.

Based on the strength in billings growth and marketing leverage, Goldman is revising 2012 estimates. 2012 revenue, CSOI and PF EPS estimates move from $2.2 bn, $275 mn and $0.31 to $2.5 bn, $388 mn and $0.40. 2013 estimates move from $2.9 bn, $804 mn, $0.80 to $3.0 bn, $ 863mn, $0.85, while 2014E are $3.8 bn, $1.1 bn, and $1.19.

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, with a 52 week range of $14.85-$31.14.


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