BofA/Merrill Lynch Reinstates Groupon, Inc. (GRPN) at Underperform
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(Updated - July 21, 2017 6:49 AM EDT) (updated to expand analyst comment)
BofA/Merrill Lynch reinstates coverage on Groupon, Inc. (NASDAQ: GRPN) with a Underperform rating and a price target of $3.50.
Analyst Akshay Bhatia believes consensus expectations remain way too high and believes the company will most likely struggle to drive sustainable and profitable growth in light of the challenges faced with customer retention trends.
Furthermore "we expect purchase frequency will be slow to increase as Groupon takes a cautious approach at rolling out higher engagement products."
FY 2017 EPS estimate is for $0.11, FY 2018 EPS estimate is for $0.12 and FY 2019 EPS estimate is for $0.16.
Shares of Groupon, Inc. closed at $3.83 yesterday.
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