Barclays analyst Trevor Young lowered the firm’s price target on Groupon to $4 from $6 and keeps an Underweight rating on the shares. The company’s billings and revenue once again missed expectations as trends deteriorated in December and Q1 "doesn’t appear to be improving much," the analyst tells investors in a research note. Accelerating further cost cuts should help turn Groupon’s EBITDA positive in Q2, but it is "tough to get constructive" on the company’s turnaround prospects with customer declines worsening, says the firm.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly
See Insiders’ Hot Stocks on TipRanks >>
Read More on GRPN:
- Groupon sees Q1 adjusted EBITDA ($10M)-($5M)
- Groupon expects to reduce current cost structure by an additional $100M
- Groupon withdraws previous FY23 free cash flow, adjusted EBITDA margin guidance
- Groupon reports Q4 adjusted EPS (38c), consensus (40c)
- Groupon options imply 7.4% move in share price post-earnings