Wunderlich Reviews Groupon Earnings, Says Local Has More Hurdles To Overcome

In a note dated October 21, Wunderlich analyst, Blake Harper reviewed Groupon, Inc.'s GRPN third quarter earnings and gave his opinion on the stock. To start, Harper noted the company posted revenue and EBITDA one and 11 percent above consensus, respectively. However, He also pointed out management guided these same metrics to be three and 20 percent below consensus in the fourth quarter. But the biggest thing on Harper's mind, is Groupon's Local business. He noted the company hit its 10 percent year-over-year growth rate for the third quarter, but feels the company's goal for another 10 percent near-term growth as well as 20 percent over the long-term is a bit "ambitious". Harper commented, "GRPN has made progress with the Local business but still has several hurdles to overcome to achieve more sustainable revenue growth." Harper has maintained a Hold rating and $6 price target on the stock while he awaits the company's Analyst Day scheduled for Wednesday, November 12.