Demystifying Groupon: Insights From 5 Analyst Reviews

5 analysts have expressed a variety of opinions on Groupon GRPN over the past quarter, offering a diverse set of opinions from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Groupon, presenting an average target of $20.4, a high estimate of $35.00, and a low estimate of $9.00. This upward trend is apparent, with the current average reflecting a 24.39% increase from the previous average price target of $16.40.

Interpreting Analyst Ratings: A Closer Look

In examining recent analyst actions, we gain insights into how financial experts perceive Groupon. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Groupon. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Groupon compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Groupon's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Groupon's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

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About Groupon

Groupon Inc acts as the middleman between consumers and merchants, offering products and services at discounts via its online store. It offers consumers daily deals from local merchants. The company's operations are organized into two segments: North America and International. The company generates the majority of its revenue from North America. The company generates revenue from transactions during which the company generates commissions by selling goods or services on behalf of third-party merchants. Revenue also includes commissions the company earn when customers make purchases with retailers using digital coupons accessed through its digital properties.

Key Indicators: Groupon's Financial Health

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Groupon's revenue growth over a period of 3M has faced challenges. As of 31 March, 2025, the company experienced a revenue decline of approximately -4.79%. This indicates a decrease in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 6.12%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Groupon's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 16.63%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.18%, the company showcases effective utilization of assets.

Debt Management: With a high debt-to-equity ratio of 5.56, Groupon faces challenges in effectively managing its debt levels, indicating potential financial strain.

Analyst Ratings: What Are They?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.