TECH in AMERICA (TiA)

SHARING AMERICA'S TECH NEWS FROM THE VALLEY TO THE ALLEY

Groupon Soars on Deutsche Bank Upgrade

by Chris Ciaccia (courtesy thstreet.com) groupon 2

NEW YORK (courtesy TheStreet) — Investors may need an actual Groupon(GRPN_) to buy shares of the company.

Deutsche Bank upgraded the Chicago-based e-commerce company to “buy” with a $10 price target, as Groupon enters its “2.0” phase. Analyst Ross Sandler noted the company is in a position to grow billings at a rate of 20% or higher, as mobile continues to be key theme for the company, and it develops better search engine optimization (SEO) and search engine marketing (SEM), which could result in EBITDA being 30% higher than initially thought.

“Sentiment has improved since our initial November ‘warm-up,’ and now we are upgrading amidst the current transition phase before growth turns back up,” Sandler wrote in a note.

Groupon shares were soaring 11% to $7.64 in morning trading.

Groupon started off as a daily deals company, but Sandler believes the next five to 10 years for the company are going to look extremely different than the company that went public less than two years ago. The company has three primary growth drivers in the future, Sandler noted. “[B]etter activation of current subs (200m+) to customers through personalization, 2) driving new customers at the top of the funnel through mobile app and PC website, and 3) launching more selection, including new channels and further penetrating Goods.”

Shares of Groupon were sharply higher in premarket trading on Friday, up 7.58% to $7.38.

Thank you. TiA.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Top Posts & Pages

POSTS

Enter your email address to follow this blog and receive notifications of new posts by email.

TEAM TiA!

%d bloggers like this: