NEW YORK (TheStreet) -- Before Monday's market open, Groupon (GRPN - Get Report) stock rating was lowered to "underperform" from "sector perform" at RBC Capital Markets. The firm reduced its price target to $3 from $4 on the e-commerce marketplace.

"While there were a few positive/neutral data points (North America Active Customer growth) in the March quarter print, we see very few signs of a turnaround in fundamentals at Groupon," RBC analysts wrote in a note released this morning.

Last week, Groupon reported better-than-expected financial results for the 2016 first quarter, but growth in North American revenue, gross profit and local billings is decelerating, analysts explained.

The company is also expected to see increased competition from Amazon.com (AMZN), Facebook (FB) and Alphabet's Google (GOOGL), making the costs of a turnaround in Groupon's business more expensive, analysts noted.

Shares of Chicago-based Groupon are rising 3.04% to $3.73 in pre-market trading on Monday.

Separately, Groupon has a "sell" rating and a letter grade of D at TheStreet Ratings because of the company's unimpressive growth in net income, disappointing return on equity, weak operating cash flow, generally disappointing stock performance and feeble earnings per share growth.

You can view the full analysis from the report here: GRPN

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.