Deutsche Bank Reinstates Groupon (GRPN) at Buy

Deutsche Bank reinstated coverage on Groupon, Inc. (NASDAQ: GRPN) with a Buy rating and a price target of $8.50. Analyst Ross Sandler continues to see favorable risk-reward.

"We are reinstating our Buy rating and $8.50 price target (unchanged vs. prior) on Groupon post the sale of a controlling stake of Ticket Monster (TMON) to KKR and Anchor Equity Partners and following 1Q15 results. We have adjusted our 2015 and 2016 bookings and revenue estimates to now reflect the TMON sale. This week’s news of CFO departure has elevated investor concerns, but at 10x 2016 EBITDA and the email headwinds largely behind, we view the risk/reward as compelling. Coupang’s recent funding ($5B val) highlights additional value in the remaining TMON minority stake held by GRPN. Shares are likely to remain range-bound until we get to 3Q results and learn whether GRPN can “grow through the tough comp” in NA Local, which management has been confident it can achieve," said Sandler.

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 $6.01 yesterday.

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