UPDATE: Northland Securities Downgrades Groupon
In a note released Wednesday, Northland Securities analyst Darren Aftahi downgraded Groupon (NASDAQ: GRPN) from Outperform to Market Perform and lowered the price target from $12 to $7.
Afhati explained the downgrade is due to worries that the company's guidance assumes a "rather aggressive" 2H14 EBITDA. Afhati notes that this will be challenging to achieve without "meaningful progress" in both Local growth and Goods margins. To conclude Afhati commented, "we wait to see if local growth can parallel mobile growth, as well as if the company can start to improve its Goods margins in 2Q and beyond."
At market open shares of Groupon were trading around ~$5.94, down from Tuesday's closing price of $6.72.
Latest Ratings for GRPN
|Sep 2014||RBC Capital||Upgrades||Underperform||Sector Perform|
|Aug 2014||Credit Suisse||Maintains||Neutral|
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.