Wells Fargo Starts Groupon, Inc. (GRPN) at Outperform

Wells Fargo initiates coverage on Groupon, Inc. (NASDAQ: GRPN) with a Outperform. PT $29.00.

The firm comments, "We believe Groupon represents an exciting, longterm investment opportunity with multiple avenues for continued rapid growth. The company pioneered the mainstream adoption of the daily deal and social commerce market and is poised to benefit as more local marketing and advertising dollars shift to the medium. Our valuation range of $27-29 is based on a multipronged approach, with an EV/sales multiple of 7-8x our FY2012 revenue estimate of $2.28B and 5-6x our FY2013 revenue estimate $3.10B. It also reflects an EV/CFO multiple of 18-20x our FY2013 CFO estimate of $973MM, which is a discount to its estimated growth rate."

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 $23.32 yesterday.

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