Is Not A Buy Despite Today’s Pullback, Says RBC Capital

In a research report issued today, RBC Capital analyst Mark Mahaney reiterated a Sector Perform rating on Inc. (NYSE:COUP) and reduced the price target to $13 (from $18), following soft top-line Q4 results, caused by a shortfall in CPG holiday campaigns.

Mahaney explained, “In the year since the IPO, financial results at COUP have been unusually erratic, which we attribute in part to the lumpiness of the coupon/CPG industry. We will continue to look for material signs of traction for the Retailer iQ platform and consistent growth in COUP’s current core business before considering getting constructive on its stock, even with the pullback. That being said, we view COUP as a leading digital promotion platform. The significant opportunity facing is to be at the center of the dramatic digital shift in coupon marketing and usage by CPGs, retailers, and consumers.” Incorporated provides digital coupons in the United States. It offers online printable, social, mobile, and loyalty card promotions.

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