Evercore Partners Downgrades Groupon, Inc. (GRPN) to Underweight, Street Est. Still Too High

August 17, 2012 6:47 AM EDT
Get Alerts GRPN Hot Sheet
Price: $3.45 -1.71%

Rating Summary:
    11 Buy, 20 Hold, 6 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Evercore Partners downgraded Groupon, Inc. (NASDAQ: GRPN) from Equal Weight to Underweight with a price target of $3.00 (from $6.50).

The firm said 2013 EBITDA estimates for Street remain too high. The firm's estimate of 2013 EBITDA of $260 mm sits ~$200 mm below the recently revised Street consensus of $470 mm.

"We see potential for future cash burn assuming billings declines persist as the deteriorating impact on changes in accrued payables could be enough to offset growth in income earned," analyst Ken Sena stated.

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 $5.00 yesterday.

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