Wells Fargo Maintains an 'Outperform' on Groupon, Inc. (GRPN); Adjusting Numbers on Revenue Revision
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Price: $21.51 -2.14%
Rating Summary:
14 Buy, 16 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
14 Buy, 16 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wells Fargo maintains an 'Outperform' on Groupon, Inc. (NASDAQ: GRPN) price target range lowered to $21-23 from $27-29.
Analyst, Jason Maynard, said, "...The revisions were due to an increase in GRPN's refund reserve accruals related to underlying shifts in the Q4 deal mix and higher price point offers, which have higher refund rates. While this is not an ideal scenario, in our view, it is important to note that these higher priced offerings are new and clearly illustrate the dynamic nature of this business...Note, we are not changing our revenue or CSOI estimates, but are now using pro forma estimates that reflect the full tax rate to match how GRPN will likely report. For FQ1 2012, we now project EPS of $0.00, down from $0.04; FY2012E EPS goes to $0.07, down from $0.26; and FY2013E EPS goes to $0.67, down from $0.77. We are also lowering our valuation range to reflect a lower multiple due to clear growing pains GRPN is exhibiting in building and managing its rapidly growing business."
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 $18.38 yesterday.
Analyst, Jason Maynard, said, "...The revisions were due to an increase in GRPN's refund reserve accruals related to underlying shifts in the Q4 deal mix and higher price point offers, which have higher refund rates. While this is not an ideal scenario, in our view, it is important to note that these higher priced offerings are new and clearly illustrate the dynamic nature of this business...Note, we are not changing our revenue or CSOI estimates, but are now using pro forma estimates that reflect the full tax rate to match how GRPN will likely report. For FQ1 2012, we now project EPS of $0.00, down from $0.04; FY2012E EPS goes to $0.07, down from $0.26; and FY2013E EPS goes to $0.67, down from $0.77. We are also lowering our valuation range to reflect a lower multiple due to clear growing pains GRPN is exhibiting in building and managing its rapidly growing business."
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 $18.38 yesterday.
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