NEW YORK (TheStreet) -- Groupon (GRPN) stock is down 2.5% to $6 per share in trading on Thursday after the online commerce marketplace operator was downgraded to "neutral" from "buy" by analysts at B. Riley today.
The firm changed its outlook after the company announced that CFO Jason Child will be stepping down at the end of July.
Current VP of Taxes and Treasury Brian Kayman will serve as the interim CFO while the company searches for a replacement.
However, analysts at Brean Capital lauded the transition and reiterated their "buy" rating and $11 price target on the company.
"Rich Williams was promoted to COO from President of North America. Jason Child, Groupon's CFO, will be leaving the company in late July 2015 to join Jawbone (private) as its CFO. Brian Kayman, VP of Tax and Treasury, was named interim CFO (effective immediately) until Groupon finds a permanent replacement," Brean analysts said.
"While sorry to see Mr. Child leave Groupon, because we believe he performed admirably during an important and challenging period of its history (including its November 2011 IPO), we are confident the company will find an able permanent replacement," they said.
TheStreet Ratings team rates GROUPON INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate GROUPON INC (GRPN) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."