Wells Fargo Maintains an 'Outperform' on Groupon, Inc. (GRPN); Adjusting Numbers on Revenue Revision
Tweet Send to a FriendGet Alerts GRPN Hot Sheet
Price: $7.21 +1.12%
Rating Summary:
4 Buy, 18 Hold, 7 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
4 Buy, 18 Hold, 7 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade GRPN Now!
Wells Fargo maintains an 'Outperform' on Groupon, Inc. (NASDAQ: GRPN) price target range lowered to $21-23 from $27-29.
Analyst, Jason Maynard, said, "...The revisions were due to an increase in GRPN's refund reserve accruals related to underlying shifts in the Q4 deal mix and higher price point offers, which have higher refund rates. While this is not an ideal scenario, in our view, it is important to note that these higher priced offerings are new and clearly illustrate the dynamic nature of this business...Note, we are not changing our revenue or CSOI estimates, but are now using pro forma estimates that reflect the full tax rate to match how GRPN will likely report. For FQ1 2012, we now project EPS of $0.00, down from $0.04; FY2012E EPS goes to $0.07, down from $0.26; and FY2013E EPS goes to $0.67, down from $0.77. We are also lowering our valuation range to reflect a lower multiple due to clear growing pains GRPN is exhibiting in building and managing its rapidly growing business."
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 $18.38 yesterday, with a 52 week range of $14.85-$31.14.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Analyst, Jason Maynard, said, "...The revisions were due to an increase in GRPN's refund reserve accruals related to underlying shifts in the Q4 deal mix and higher price point offers, which have higher refund rates. While this is not an ideal scenario, in our view, it is important to note that these higher priced offerings are new and clearly illustrate the dynamic nature of this business...Note, we are not changing our revenue or CSOI estimates, but are now using pro forma estimates that reflect the full tax rate to match how GRPN will likely report. For FQ1 2012, we now project EPS of $0.00, down from $0.04; FY2012E EPS goes to $0.07, down from $0.26; and FY2013E EPS goes to $0.67, down from $0.77. We are also lowering our valuation range to reflect a lower multiple due to clear growing pains GRPN is exhibiting in building and managing its rapidly growing business."
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 $18.38 yesterday, with a 52 week range of $14.85-$31.14.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Jefferies Bumps Zumiez (ZUMZ) Numbers Up, But Remains on Sidelines
- Toll Bros. (TOL) Estimates/PT Raised at Compass Point
- Bulls and Bears Do Battle in Aeropostale (ARO); Turnaround Intact?
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT ChangeRelated Entities
Wells Fargo
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
