Yahoo Finance Why is Groupon (GRPN) Stock Tanking Today?
On Wednesday, shares of online marketplace Groupon Inc GRPN are down over 9% in late morning trading after UBS cut its rating for the company from ‘Neutral’ to ‘Sell.’
Analyst Eric Sheridan said that "While Groupon has recently shown signs of progress in its transformation to an e-commerce marketplace and its core initiatives (including streamlining its international operations or customer acquisition), we believe there is still a long road ahead in strengthening the company's positioning in the local ad and/or local e-commerce market.”
Sheridan also believes that pressure on the company is unlikely to ease up
The firm kept its price target of $3.20 for Groupon, implying a downside risk of 30% on the stock; their 2016 and 2017 estimates are below consensus.
Groupon currently holds a #2 (Buy) rank on the Zacks Rank.
UBS has had a busy morning today. The firm also downgraded fellow website company Yelp Inc YELP, sending its stock downhill.
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