Ascendiant Capital Markets reissued their sell rating on shares of Groupon (NASDAQ: GRPN) in a report released on Thursday. Ascendiant Capital Markets currently has a $3.50 target price on the stock, up from their previous target price of $2.50.
“Pro forma EPS was $(0.01), compared to our and consensus estimates of $0.03. Q4 guidance was for revenue of $625 – 675 million and operating income of $0 – 20 million (which implied EPS of $0.00 – 0.03)…[M]anagement provided initial Q1 2013 guidance for revenue of $560 – 610 million and operating income of $(10) – 10 million, which is well below current consensus estimates.”Ascendiant Capital maintained a cautious outlook for 2013. “We believe uncertainties with Groupon remain due to staff turnover, competition, and increased investments. In our view, the slowing growth and weak margins are likely to bolster continued skepticism as to Groupon’s valuation, growth prospects, and profit potential despite its lower valuation and multiples.,” the firm’s analyst commented.
Several other analysts have also recently commented on the stock. Analysts at Evercore Partners cut their price target on shares of Groupon to $4.30 in a research note to investors on Thursday. Separately, analysts at Raymond James downgraded shares of Groupon from a market perform rating to an underperform rating in a research note to investors on Thursday. Finally, analysts at Wells Fargo downgraded shares of Groupon from an outperform rating to a market perform rating in a research note to investors on Thursday.
Three analysts have rated the stock with a buy rating, fifteen have issued a hold rating, one has given an underweight rating, and four have given a sell rating to the company. The stock has an average rating of hold and a consensus price target of $5.20.
Shares of Groupon traded up 2.65% during mid-day trading on Thursday, hitting $5.235. Groupon has a one year low of $2.60 and a one year high of $19.21. The stock’s 50-day moving average is currently $5.37. The company’s market cap is $3.439 billion.
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.