UPDATE: Goldman Sachs Lowers Groupon's PT
According to a research report published earlier today, Goldman Sachs has lowered Groupon's (NASDAQ: GRPN) PT from $29 to $25.
Goldman Sachs commented in the report, “Groupon revised 4Q11 reported results on Friday. The restated billings, revenue, CSOI, GAAP/PF EPS are $17 mn, $14 mn, $30 mn, $0.04/$0.04 below those reported on 02/08/12 (Exhibit 1-2). E&Y also noted a material weakness in the company's closing process that Groupon is addressing. Revisions were related to an increase in the refund reserve to reflect a higher-than-expected refund request rate for newer, higher-ASP offers within local (e.g. Lasik eye surgery, laser hair removal, etc.), and to more complex deals (e.g., prix fixe dinner with wine for 2). The impact represents under 2% of gross billings in the quarter.”
Goldman Sachs maintains its Buy rating on Groupon, which closed Friday at $18.38.
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