Wunderlich Securities Upgrades Groupon, Inc. (GRPN) to Buy

Wunderlich Securities upgraded Groupon, Inc. (NASDAQ: GRPN) from Hold to Buy with a price target of $10.00 (from $6.00).

Analyst Blake Harper commented, "We are upgrading Groupon, Inc. (GRPN) to Buy from Hold and raising our price target to $10 from $6 due to our expectations for stronger growth in the North America segment based on our survey of over 300 U.S. consumers. Our survey results show that 78% of respondents who recently purchased a Groupon intend to purchase another one within three months and most of the purchases (48%) would be for Local deals. In addition, the survey indicated a preference for Pull transactions instead of email and 40% of those surveyed expected to buy more Groupons in the next 12 months (vs. the prior 12 months), compared to only 6% who intend to purchase less. Our $10 PT is based on our 10-year DCF with a 14% discount rate and 3% terminal growth, which implies 1.5x 2016E EV/S, 15x EV/EBITDA, and 38x P/E."

For an analyst ratings summary and ratings history on Groupon, Inc. click here. For more ratings news on Groupon, Inc. click here.

Shares of Groupon, Inc. closed at $7.56 yesterday.

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