Evercore Partners Downgrades Groupon, Inc. (GRPN) to Equal Weight; Core Weakening
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Price: $7.13 -1.79%
Rating Summary:
4 Buy, 18 Hold, 7 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
4 Buy, 18 Hold, 7 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Trade GRPN Now!
Evercore Partners downgraded Groupon, Inc. (NASDAQ: GRPN) from Overweight to Equal Weight with a price target of $9.00 (from $17.00).
Analyst, Ken Sena, said, "We are reducing our rating given our concerns over the transparency and disclosure of the 1P Goods business, coupled with signs of deterioration within the core daily deals business...For 2013, we have reduced EBITDA from $583 to $434 million. We would revisit our rating and target should the tracking data prove inconsistent with actual results or if more transparency on Groupon's 1P Goods business becomes available. At $7 / share, Groupon trades at 1.4x revenues (in line with Amazon (Nasdaq: AMZN)), and 8.1x EBITDA (lower than EBAY's (Nasdaq: EBAY) 10x) on our 2013 estimates."
"We are lowering 2Q12 global billings by 9% to $1.36 billion and revenues by 6% to $550 million, the low-end of the company’s guidance range."
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 $7.24 yesterday, with a 52 week range of $7.02-$31.14.
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Analyst, Ken Sena, said, "We are reducing our rating given our concerns over the transparency and disclosure of the 1P Goods business, coupled with signs of deterioration within the core daily deals business...For 2013, we have reduced EBITDA from $583 to $434 million. We would revisit our rating and target should the tracking data prove inconsistent with actual results or if more transparency on Groupon's 1P Goods business becomes available. At $7 / share, Groupon trades at 1.4x revenues (in line with Amazon (Nasdaq: AMZN)), and 8.1x EBITDA (lower than EBAY's (Nasdaq: EBAY) 10x) on our 2013 estimates."
"We are lowering 2Q12 global billings by 9% to $1.36 billion and revenues by 6% to $550 million, the low-end of the company’s guidance range."
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 $7.24 yesterday, with a 52 week range of $7.02-$31.14.
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