Sterne Agee analysts Arvind Bhatia and Brett Strauser rate Groupon Inc (NASDAQ:GRPN) as a Buy as they comment on today’s volatility.
Groupon Inc (NASDAQ:GRPN)’s shares are down 8% intraday following last night’s announced departure of Jeff Holden, SVP of Product Management.
Buy ratings maintained for Groupon
Although we think Groupon Inc (NASDAQ:GRPN) has enough management depth, we consider this as a mild negative given Jeff’s key role at Groupon. Our understanding is Jeff will NOT be joining a competitor. The timing of the announcement adds to our existing concerns regarding 4Q trends. Recall, in early January, when the company closed the acquisition of Ticket-Monster, management added language on its website that caused us to be concerned. Specifically, management indicated: “We are not updating or affirming the guidance that we gave on the earnings call on Nov 7, 2013.” Despite our near-term concerns, we think the stock is attractive long-term for the following reasons: 1) We like the turnaround potential; 2) We think Groupon is the best positioned company to solve for “local” eCommerce; 3) Attractive valuation.
