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Benchmark Downgrades Groupon, Inc. (GRPN) to Hold; Weak Results; Trends Poor

August 14, 2012 6:58 AM EDT Send to a Friend
Get Alerts GRPN Hot Sheet
Price: $6.68 +0.15%

Rating Summary:
    8 Buy, 19 Hold, 4 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 25 | Down: 20 | New: 23
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Benchmark downgraded Groupon, Inc. (NASDAQ: GRPN) from Buy to Hold with a price target of $7.00 (from $20.00).

Analyst, Clayton F. Moran, said, "2Q12 subscriber growth slowed meaningfully. Gross billing per subscriber dropped materially. This drove gross billings down sequentially. This was discouraging enough but 3Q operating income guidance implies a sequential contraction in EBITDA margin. It appears the daily deal business has run into a wall, with some blame going to the European recession. We believe the weak trends are likely to persist."

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 $7.55 yesterday.




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