Will Groupon Stock Ever Be Great? Merrill Lynch Thinks Not

Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. But do these analysts even know what they're talking about? Today, we're taking one high-profile Wall Street pick and putting it under the microscope...

It's been many a year since one could last describe e-deals website Groupon (NASDAQ: GRPN) as a hot stock. Today, Bank of America Merrill Lynch thinks you should drop it.

That's the upshot of a new rating that came out this morning from B of A's Merrill Lynch brokerage unit. Reinstating coverage of Groupon stock on Friday, Merrill assigned Groupon an underperform rating and a $3.50 price target. With Groupon shares recently trading for just under $4, this implies a nearly 8% loss on the stock lies ahead.

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Source: Fool.com