UPDATE: Jefferies Reiterates $4 PT, Hold Rating on Groupon Following Disappointing Quarter
Jefferies maintained Groupon (NASDAQ: GRPN) with a Hold rating and a $4.00 price target.
Jefferies noted, "Groupon reported another miss quarter with strong gross billings growth but somewhat disappointing revenue growth and surprisingly low margins. Revenue growth of 30% Y/Y was driven by 109% Y/Y growth in NA, offsetting a decline of 16% Y/Y (-14% ex-FX) internationally. In addition, 1Q13 guidance came materially short of expectations. We reiterate our Hold rating and $4 PT."
Groupon closed at $5.98 on Wednesday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.