BofA/Merrill Lynch Upgrades Groupon, Inc. (GRPN) to Buy

BofA/Merrill Lynch upgraded Groupon, Inc. (NASDAQ: GRPN) from Neutral to Buy with a price target of $9.50 (from $8.00), saying the downward estimate revision cycle could be ending.

Paul Bieber said their positive view is based on: 1) GRPN’s large and growing customer base; 2) e-mail headwinds are diminishing, which should aid local billings growth; 3) new disclosures indicate stable cohort spending; 4) easy local billings comps and potential 4Q acceleration; 5) Ticket Monster (Tmon) growth acceleration over the last several quarters has increased its value; and 6) we think GRPN has strategic asset value.

The firm raised 2015 revenue estimate to $3.64 billion from $3.58 billion and lowered EBITDA estimate to $334.7 million from $344.2 million.

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 $7.53 yesterday.

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