Groupon could close the year at $9.66
With Groupon’s (GRPN) 1Q18 earnings report around the corner, Wall Street seems divided on the company’s prospects. The majority of analysts tracking Groupon are urging a cautious approach to the stock.
At least 38 equity research companies are tracking Groupon, and 21 of them have “hold” ratings on the stock. Some 12 other companies are optimistic about Groupon, calling its stock a “buy.” On average, Groupon carries a “hold” rating.
Groupon shares are currently trading in the vicinity of $4.60, but the consensus on Wall Street is that the stock has the potential to rise to $9.66 over the next 12 months. Groupon shares dipped 14.9% in the first three months of 2018, while Amazon (AMZN) shares jumped 23.8% over the same period.
GrubHub (GRUB) shares jumped 41.3% in the first three months of 2018, while eBay (EBAY) shares rose 6.6% over the same period. Yelp (YELP) shares dipped less than 1.0% in the first three months of 2018.
Price slashed after earnings miss
UBS is the Wall Street company most optimistic about Groupon, assigning the stock a $50 price target. Bank of America (BAC) is the most bearish on Groupon, assigning the stock a $3.50 price target. Goldman Sachs (GS) and Wedbush slashed their price targets on Groupon stock after the company missed earnings expectations for 4Q17.
Upcoming report could change Groupon’s view
Groupon’s revenue fell while its profit increased in 4Q17 as it continued to prioritize profitability over revenue growth. Groupon’s upcoming report could change how Wall Street views the stock.