Groupon Inc Receives a Hold from Jefferies

By George MacDonald

According to The Fly, jefferies analyst Brian Pitz reiterated a Hold rating on Groupon Inc (NASDAQ: GRPN) today and set a price target of $3.50. The company’s shares opened today at $3.62.

Pitz observed, “GRPN delivered better than expected results on improving operating fundamentals but its transition to a more reliable footing remains a work in progress. The Co kept streamlining its int’l businesses and now operates in only 27 countries while investments remain focused on North America (emphasis on adding new customers) and core markets. We still see a long road ahead with continuing margin pressure from investments.”

Currently, the analyst consensus on Groupon Inc is Hold and the average price target is $3.70, representing a 2.2% upside. In a report issued on April 25, Piper Jaffray also reiterated a Hold rating on the stock with a $4 price target.

The company has a one year high of $7.19 and a one year low of $2.15. Currently, Groupon Inc has an average volume of 15.02M.

Unlike Jefferies` latest rating, based on the recent corporate insider activity of 74 insiders, corporate insider sentiment is negative on the stock. Most recently, in November 2014, Daniel T. Henry, a a Director at GRPN bought 30,000 shares for a total of $232,500.

According to TipRanks.com, Pitz is a 5-star analyst with an average return of 12.3% and a 65.9% success rate. Pitz covers the Technology sector, focusing on stocks such as Activision Blizzard, Active Network Inc, and Electronic Arts.

Groupon, Inc. is a local commerce marketplace that connects merchants to consumers by offering goods and services at a discount. The company operates through three segments: North America, EMEA, which is comprised of Europe, Middle East and Africa, and the remainder of the Company’s international operations Rest of World. It operates its business under three categories: Local Deals, Groupon Goods and Groupon Getaways. The Local Deals category includes deals with local merchants, deals with national merchants and local events. The Groupon Goods category offers customers the ability to find deals on merchandise across multiple product lines, including electronics, sporting goods, jewelry, toys, home and apparel. The Groupon Getaways category includes travel offers, including hotels, airfare and package deals covering both domestic and international travel. Groupon was founded by Andrew D. Mason, Eric P. Lefkofsky and Bradley A. Keywell on January 15, 2008 and is headquartered in Chicago, IL.