In a report released today, Sameet Sinha from B.Riley FBR reiterated a Buy rating on Groupon Inc (GRPN), with a price target of $5. The company’s shares opened today at $3.47.
Sinha commented:
“We recently hosted an NDR with Groupon (GRPN) CFO and came away with better appreciation of the levers in the business along with the company’s strategic value. 2018 was a tough year as a key product change did not gain traction and in 2H it faced traffic headwinds. A major product overhaul is being planned as a panacea for both as we believe fighting secular traffic issues could be equivalent to pushing against a string. Better merchandizing of its O&O inventory, additional 3P partnerships to augment inventory, and syndication of its deals on 3P marketplaces should allow the company to leverage its assets. With the stock trading at 6x 2020 EV/AEBITDA, growth expectations are minimal and strategic value is being ignored, in our opinion. Our PT of $5 is based on 2x EV/2020 GP for EV/2020 GP for International.”
According to TipRanks.com, Sinha is a 4-star analyst with an average return of 6.4% and a 51.1% success rate. Sinha covers the Technology sector, focusing on stocks such as Digital Turbine Inc, Brightcove Inc, and Cars com Inc.
Groupon Inc has an analyst consensus of Hold, with a price target consensus of $3.83.
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The company has a one-year high of $5.52 and a one-year low of $2.80. Currently, Groupon Inc has an average volume of 6.61M.
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Groupon, Inc. provides marketing services by selling vouchers through online local marketplaces. It offers mobile and online marketplace where people discover and save on amazing things to do, see, eat and buy. The company was founded by Andrew D. Mason, Eric Paul Lefkofsky, and Bradley A. Keywell on January 15, 2008 and is headquartered in Chicago, IL.
