Groupon, Inc. (GRPN) Gets an Early Fan, Benchmark Starts at 'Buy'
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Price: $20.53 -4.56%
Rating Summary:
14 Buy, 16 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 20
Rating Summary:
14 Buy, 16 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 20
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Benchmark initiates coverage on Friday's IPO Groupon, Inc. (NASDAQ: GRPN) with a Buy rating and $32 price target, suggesting 23% upside.
The firm notes that Groupon has a dominant global position in the rapidly emerging new Internet segment of daily deals and marketing of local commerce. They believe the company can experience exponential growth and potentially high profit creation. The roughly breakeven 3Q11 EBITDA and operating income shows its potential for profitability, the firm highlights.
Benchmark's analyst expects instant mobile offerings from Groupon Now plus ongoing diversification of offerings, including travel via Groupon Getaways and product deals, to combine with geographic expansion to drive total Groupon gross billings growth of 450% y/y in 2011 to $4.1 billion, leading to $1.6 billion of revenue.
The firm projects revenue could grow 56% to $2.5 billion in 2012 and 23% to $3.1 bilion in 2013.
For more ratings news on Groupon, Inc. click here and for the rating history of Groupon, Inc. click here.
Shares of Groupon, Inc. closed at $26.11 yesterday.
The firm notes that Groupon has a dominant global position in the rapidly emerging new Internet segment of daily deals and marketing of local commerce. They believe the company can experience exponential growth and potentially high profit creation. The roughly breakeven 3Q11 EBITDA and operating income shows its potential for profitability, the firm highlights.
Benchmark's analyst expects instant mobile offerings from Groupon Now plus ongoing diversification of offerings, including travel via Groupon Getaways and product deals, to combine with geographic expansion to drive total Groupon gross billings growth of 450% y/y in 2011 to $4.1 billion, leading to $1.6 billion of revenue.
The firm projects revenue could grow 56% to $2.5 billion in 2012 and 23% to $3.1 bilion in 2013.
For more ratings news on Groupon, Inc. click here and for the rating history of Groupon, Inc. click here.
Shares of Groupon, Inc. closed at $26.11 yesterday.
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