NEW YORK (TheStreet) -- Shares of RetailMeNot Inc. (SALE) are down 31.57% to $13.96 after the company was downgraded to "neutral" from "buy" at Goldman Sachs.

The firm set a price target of $19 for the digital coupon marketplace company, down from its previous mark of $27.

Goldman Sachs said it removed the company from its "Americas Buy List" because the company is struggling to transition to mobile.

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"The desktop to mobile transition is proving more of a headwind despite stabilizing rankings in organic search," analysts at Goldman Sachs said.  "While the company continues to invest for long term growth, traction with in-store is taking longer than we anticipated while lower mobile monetization, pricing pressure, international and the CFO transition create additional uncertainty."

Separately, TheStreet Ratings team rates RETAILMENOT INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate RETAILMENOT INC (SALE) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and unimpressive growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Looking at the price performance of SALE's shares over the past 12 months, there is not much good news to report: the stock is down 38.39%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Internet & Catalog Retail industry. The net income has decreased by 15.6% when compared to the same quarter one year ago, dropping from $5.12 million to $4.33 million.
  • RETAILMENOT INC's earnings per share declined by 20.0% in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($0.86 versus $0.47).
  • When compared to other companies in the Internet & Catalog Retail industry and the overall market, RETAILMENOT INC's return on equity is below that of both the industry average and the S&P 500.
  • The gross profit margin for RETAILMENOT INC is currently very high, coming in at 93.69%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 7.26% is above that of the industry average.
  • You can view the full analysis from the report here: SALE Ratings Report

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