BofA/Merrill Lynch Reinstates Groupon, Inc. (GRPN) at Underperform

July 21, 2017 6:44 AM EDT
Get Alerts GRPN Hot Sheet
Price: $35.84 -2.4%

Rating Summary:
    12 Buy, 18 Hold, 4 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 26 | New: 11
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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.

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 $3.83 yesterday.

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