UPDATE - Barclays Initiates Coverage on Groupon (GRPN) with an Overweight; Acting Local, Thinking Global
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Price: $19.63 +0.15%
Rating Summary:
14 Buy, 16 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
14 Buy, 16 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UPDATE - Barclays initiates coverage on Groupon (Nasdaq: GRPN) with an Overweight rating. PT $27.
Barclays analyst says, "Growth Drivers: We forecast a 3-year revenue CAGR of nearly 32% ('11E-'14E) and significant margin expansion and expect revenue and adjusted EBITDA can reach $3 billion and $945 million, respectively, by CY13, driven by 1) continued viral expansion of the subscriber base, 2) improvements in conversion of subs to shoppers and purchase frequency as deal selection and targeting improve, and 3) further marketing efficiencies. Key metrics to monitor for progress over the long term include 1) conversion rates and average Groupon per customer, 2) average marketing spend per new subscriber, and 3) revenue per average salesperson."
"Risks: Investment risks and other concerns include: 1) the company and industry segment are relatively new, which makes forecasting more challenging; 2) given the early growth stage of the company and related investment spending, the valuation is at a premium on near-term earnings; 3) IPO lock-up expiration in early May 2012; and 4) competition from LivingSocial, Amazon (Nasdaq: AMZN)(EW-rated), Google (Nasdaq: GOOG)(OW-rated) and others, among other possible risks."
To see more ratings on GRPN, Click Here
Barclays analyst says, "Growth Drivers: We forecast a 3-year revenue CAGR of nearly 32% ('11E-'14E) and significant margin expansion and expect revenue and adjusted EBITDA can reach $3 billion and $945 million, respectively, by CY13, driven by 1) continued viral expansion of the subscriber base, 2) improvements in conversion of subs to shoppers and purchase frequency as deal selection and targeting improve, and 3) further marketing efficiencies. Key metrics to monitor for progress over the long term include 1) conversion rates and average Groupon per customer, 2) average marketing spend per new subscriber, and 3) revenue per average salesperson."
"Risks: Investment risks and other concerns include: 1) the company and industry segment are relatively new, which makes forecasting more challenging; 2) given the early growth stage of the company and related investment spending, the valuation is at a premium on near-term earnings; 3) IPO lock-up expiration in early May 2012; and 4) competition from LivingSocial, Amazon (Nasdaq: AMZN)(EW-rated), Google (Nasdaq: GOOG)(OW-rated) and others, among other possible risks."
To see more ratings on GRPN, Click Here
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