Groupon Inc Receives a Buy from B.Riley FBR

By Austin Angelo

In a report released today, Sameet Sinha from B.Riley FBR maintained a Buy rating on Groupon Inc (NASDAQ: GRPN), with a price target of $6.10. The company’s shares closed yesterday at $4.71.

Sinha wrote:

“GRPN reported a mixed 4Q, with below expectations 1Q and FY18 guidance, driving the stock down 9.4% during market hours, yesterday. Gross Profit (GP)/AEBITDA came in at $386.9M/ $105.2M versus our estimates of $372.2M/$96.4M and consensus of $379.0M/$93.0M. North America (NA) was weak with Gross Billings (GB) of $1,060M versus our estimates of $1,079M and GP of $265.0M versus our estimate of $240.3M, as Goods was seasonally strong. Net new customers was up 400k, adding 200k in the International segment. 2018 AEBITDA guidance midpoint of $265M was above our estimate of $259.6M, but below the street at $276M as management indicated they intend to invest early in the year in marketing.”

According to TipRanks.com, Sinha is a 4-star analyst with an average return of 6.4% and a 53.2% success rate. Sinha covers the Technology sector, focusing on stocks such as ANGI Homeservices Inc, Digital Turbine Inc, and Limelight Networks.

Currently, the analyst consensus on Groupon Inc is Strong Buy and the average price target is $5.92, representing a 25.7% upside.

In a report released yesterday, Piper Jaffray also maintained a Buy rating on the stock with a $6.25 price target.

Based on Groupon Inc’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $873 million and quarterly net profit of $47.72 million. In comparison, last year the company earned revenue of $935 million and had a GAAP net loss of $52.59 million.

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Groupon, Inc. engages in the operation of online local commerce marketplace that connects merchants to consumers by offering goods and services at a discount. It operates through the following business segments: North America, EMEA, and Rest of World. The North America segment comprises of the United States and Canada.