4 Analysts Assess Groupon: What You Need To Know

Across the recent three months, 4 analysts have shared their insights on Groupon GRPN, expressing a variety of opinions spanning from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $23.5, along with a high estimate of $28.00 and a low estimate of $20.00. Experiencing a 4.08% decline, the current average is now lower than the previous average price target of $24.50.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Groupon among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Groupon. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Groupon compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Groupon's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of Groupon's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Groupon analyst ratings.

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Unveiling the Story Behind Groupon

Groupon Inc acts as the middleman between consumers and merchants, offering a variety of 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.

Breaking Down Groupon's Financial Performance

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Decline in Revenue: Over the 3 months period, Groupon faced challenges, resulting in a decline of approximately -3.48% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Groupon's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -8.05%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Groupon's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -24.66%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -1.74%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Groupon's debt-to-equity ratio is notably higher than the industry average. With a ratio of 5.78, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Analyst Ratings: What Are They?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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