In a report released today, Sameet Sinha from B.Riley FBR reiterated a Buy rating on Groupon Inc (NASDAQ: GRPN), with a price target of $6.30. The company’s shares opened today at $4.78.
Sinha observed:
“Groupon (GRPN) reported 2Q GP in line, guided below for 3Q and reiterated FY18 outlook; shares traded up 2.5% on Friday (8/3). Gross Profit (GP)/AEBITDA came in at $323.7M/$56.2M versus our estimates of $323.4M/$52.7M and consensus $327.0M/$54.0M. Net new customers was -300k overall as NA was down 400k, while International grew 100k. The key metric, NA Local GP was -8% (versus our estimate of -7%) due to continued growth in Groupon+. Investments in International marketing are increasing more than the decline in domestic marketing and hence 3Q18 AEBITDA was guided to “high 40s” versus consensus $61M, setting a very high bar for 4Q as FY18 AEBITDA guidance was maintained at $285M at the midpoint. We maintain our 2018/2019 AEBITDA at $285.1M/$299.8M. Our $6.30 PT based on 3x North American ’19 GP and 2x International ’19 GP .”
According to TipRanks.com, Sinha is a 4-star analyst with an average return of 6.5% and a 53.0% success rate. Sinha covers the Technology sector, focusing on stocks such as Digital Turbine Inc, Limelight Networks, and Alphabet Inc.
Currently, the analyst consensus on Groupon Inc is a Hold with an average price target of $5.93.
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The company has a one-year high of $5.99 and a one-year low of $3.80. Currently, Groupon Inc has an average volume of 10.67M.
Based on the recent corporate insider activity of 71 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of GRPN in relation to earlier this year. Most recently, in May 2018, Theodore Leonsis, a Director at GRPN bought 603,750 shares for a total of $24,150.
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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.
