William Blair Maintains Market Perform On Groupon Following Its First Analyst Day
William Blair analyst Ralph Schackart maintained a Market Perform rating on Groupon (NASDAQ:GRPN), as the company hosted an investor and analyst day in Chicago, On Tuesday, November 11. No price target was given.
Schackart, said, “At its first-ever analyst day, Groupon explained the business transformation since the company’s IPO, highlighted the challenges it has encountered, and outlined its plans for achieving its long-term goals of 20%-plus annual billings and gross profit growth. Following the analyst day, we continue to believe management is moving the company in the right direction and is focused on driving improvement in key areas—specifically developing its pull marketplace and increasing utilization and conversions from its large mobile user base.
The analyst concluded, “Although we are encouraged with the progress the company is making, we are waiting for both consolidated Local billings and revenues to return to consistent growth. For the stock to outperform from here, we believe Groupon will need to be an upward revision story in 2015 in order for investors to have increased confidence in its longer-term targets. While we have a positive bias on the shares, we are currently maintaining our Market Perform rating.”