UPDATE: UBS Upgrades Groupon, Inc. (GRPN) to Buy on Attractive Valuation

(Updated - January 17, 2020 4:37 AM EST)

UBS analyst Eric Sheridan upgraded Groupon, Inc. (NASDAQ: GRPN) from Neutral to Buy with a price target of $3.50.

The analyst comments "While GRPN's stock remained volatile throughout 2019 on the back of user growth narratives, we think that momentum has been building against mgmt long term objectives to focus on a) user growth wrapped around "quality" not "quantity"; b) framing and allocating mkting [sic] against payback ROI targets & c) positioning GRPN for success in a mobile first world. In addition, initiatives aimed at broadening out available inventory (esp. thru distribution partners) & driving higher levels of shopping velocity per user and driving better output in terms of gross profit per user growth. Looking forward, we see GRPN as compellingly cheap with an asymmetric risk/reward profile from current levels. As a result, we upgrade our rating to Buy and maintain our $3.50 PT but see a 2:1 skew in risk/reward between our upside & downside cases."

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 $2.80 yesterday.

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