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RBC Capital Upgrades Groupon, Inc. (GRPN) to Sector Perform

September 2, 2014 6:08 AM EDT
Get Alerts GRPN Hot Sheet
Price: $14.36 --0%

Rating Summary:
    13 Buy, 17 Hold, 4 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 8 | Down: 5 | New: 36
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RBC Capital upgraded Groupon, Inc. (NASDAQ: GRPN) from Underperform to Sector Perform with a price target of $6.00 (from $5.00).

Analyst Mark Mahaney cited the significant correction in GRPN shares, material reduction in Street estimates, a more reasonable valuation, signs of operational improvements and positive takes from recent management meetings.

Mahaney notes shares are down 43% on the year, Street ’14 EBITDA reduced 32% YTD to $270MM, valuation has gone from 17X 2014 EV/EBITDA earlier in ’14 to 11X 2015 EV/EBITDA today, and Groupon has made progress towards its 3 operating initiatives. "The point for us is that the bar has been lowered, and we see forward EPS catalysts as now equally weighted positive and negative," the analyst said.

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 $6.80 yesterday.



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RBC Capital, Mark Mahaney