Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Piper Analyst Suggests Buying The Dip In Groupon

Courtesy of Benzinga.

Piper Analyst Suggests Buying The Dip In Groupon

Groupon Inc (NASDAQ: GRPN) came under heavy selling pressure Tuesday morning in reaction to a report the company’s November performance was poor.

The Analyst

Piper Jaffray’s Sam Kemp maintains an Overweight rating on Groupon’s stock with an unchanged $6.25 price target.

The Thesis

Groupon’s stock fell as much as 5 percent Tuesday after third party data suggested the company’s November performance was weak, Kemp said in a note. The problem is that third-party scraping data has proven itself to be “ineffective” given the company’s focus on Groupon+ and complete data can not be collected by third par

As Groupon+ becomes more successful over time, the company will actually see lower engagement of traditional vouchers which is what third party data gathers collect, the analyst said. In other words, it’s likely weak trends are “actually suggesting strong adoption of Groupon+ (a good thing).”

Groupon is expected to show a strong performance in the fourth quarter due to higher marketing spend, momentum in customer frequency which started in the fourth quarter, the re-platforming of LivingSocial, early signs of success in Groupon+, and an overall branding campaign.

Price Action

Shares of Groupon were trading lower by more than 4 percent at $5.61.

Related Links:

Groupon Is Starting To Look Like A Better Deal

Goldman Sachs: Groupon’s Economics Are Getting Worse

Image: Rusty Clark ~ 100K Photos, Flickr

Latest Ratings for GRPN

Date Firm Action From To
Nov 2017 Barclays Maintains Underweight
Nov 2017 Morgan Stanley Maintains Underweight
Nov 2017 Citigroup Maintains Neutral

View More Analyst Ratings for GRPN


View the Latest Analyst Ratings

Posted-In: Groupon Plus Piper Jaffray Sam KempAnalyst Color Analyst Ratings Trading Ideas Best of Benzinga


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!