Wunderlich Reviews Groupon Earnings, Says Local Has More Hurdles To Overcome

In a note dated October 31, Wunderlich analyst Blake T. Harper reviewed Groupon Inc's (NASDAQ: GRPN) third-quarter earnings and gave his opinion on the stock.

To start, Harper noted the company posted revenue and EBITDA 1 percent and 11 percent above consensus, respectively. However, he also pointed out management guided these same metrics to be 3 percent and 20 percent below consensus in the fourth quarter.

But the biggest thing on Harper's min is Groupon's Local business. He noted the company hit its 10 percent year-over-year growth rate for the third quarter, but feels the company's goal for another 10 percent near-term growth as well as 20 percent over the long-term is a bit "ambitious."

Harper commented, "GRPN has made progress with the Local business but still has several hurdles to overcome to achieve more sustainable revenue growth."

Harper has maintained a Hold rating and $6 price target on the stock while he awaits the company's Analyst Day scheduled for Wednesday, November 12.