Ascendiant Capital Starts Groupon, Inc. (GRPN) at Sell; Slowing Growth & Customer Acquisition Costs Remain Significant Concern
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Price: $20.50 -4.7%
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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Ascendiant Capital initiates coverage on Groupon, Inc. (NASDAQ: GRPN) with a Sell. PT $14.00.
Analyst, Edward Woo, said, "Growth is slowing as first-mover advantage is being eroded by competition and consumer fatigue. We recommend waiting for a better entry point for the stock or until business metrics improve sufficiently to justify the rich valuation."
"The high short position in the stock (~50% of a very small float) may result in a short squeeze should Groupon report a better than expected Q4. Even so, we believe investors are likely to remain skeptical unless growth accelerates or the company demonstrates a path to earnings sufficient to justify the rich valuation."
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 $20.76 yesterday.
Analyst, Edward Woo, said, "Growth is slowing as first-mover advantage is being eroded by competition and consumer fatigue. We recommend waiting for a better entry point for the stock or until business metrics improve sufficiently to justify the rich valuation."
"The high short position in the stock (~50% of a very small float) may result in a short squeeze should Groupon report a better than expected Q4. Even so, we believe investors are likely to remain skeptical unless growth accelerates or the company demonstrates a path to earnings sufficient to justify the rich valuation."
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 $20.76 yesterday.
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