Groupon’s ( NASDAQ: GRPN ) business shift and macroeconomic uncertainty for the remainder of 2022 caused Goldman to trim targets for the stock on Friday.
“Broadly, we see Groupon as strategically focused on growing their local experience offering; however, open questions remain around future performance for the business that are both idiosyncratic and the broader macroeconomic volatility and the impact it might have on any consumer facing business in the coming 6-12 months,” the bank told clients. “We see the upside/downside nodes on a mixture of these themes as the key drivers of GRPN's stock price and investor debates in the coming year.”
In terms of idiosyncratic risks, the bank noted that a new management team is seeking to shift the business and focus more pointedly on beauty and wellness verticals. This strategy remains a question mark, according to Goldman.
As such, a “Sell” rating was maintained on Groupon ( GRPN ) with a price target pulled in to $11 from $12.10.
Interestingly, the price target is significantly above the stock’s current level despite a Sell rating. Shares of the Chicago-based online marketplace have fallen nearly 80% in the past year and over 40% in just the past month.
Short interest on the name has risen to nearly 40%, per SeekingAlpha data .
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Goldman trims outlook for Sell-rated Groupon amid consumer weakness