UPDATE: Ascendiant Capital Markets Lowers PT to $8 on Groupon on Competition, Cost Increases

Ascendiant Capital Markets reiterates its Sell rating on Groupon

and reduces its price target from $11 to $8. Ascendiant Capital Markets notes, "In our view, the recent restatement and weakness in controls are likely to bolster continued skepticism as to Groupon's valuation, growth prospects, and profit potential. In addition, weakness for valuations of social media stocks (triggered by the controversial recent IPO of Facebook) may add to this volatility." GRPN closed at $9.60 on Wednesday.