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."