This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Groupon Soars on Deutsche Bank Upgrade

NEW YORK ( TheStreet) -- Investors may need an actual Groupon (GRPN - Get Report) to buy shares of the company.

Deutsche Bank upgraded the Chicago-based e-commerce company to "buy" with a $10 price target, as Groupon enters its "2.0" phase. Analyst Ross Sandler noted the company is in a position to grow billings at a rate of 20% or higher, as mobile continues to be key theme for the company, and it develops better search engine optimization (SEO) and search engine marketing (SEM), which could result in EBITDA being 30% higher than initially thought.

"Sentiment has improved since our initial November 'warm-up,' and now we are upgrading amidst the current transition phase before growth turns back up," Sandler wrote in a note.

Groupon shares were soaring 11% to $7.64 in morning trading.

Groupon started off as a daily deals company, but Sandler believes the next five to 10 years for the company are going to look extremely different than the company that went public less than two years ago. The company has three primary growth drivers in the future, Sandler noted. " B etter activation of current subs (200m+) to customers through personalization, 2) driving new customers at the top of the funnel through mobile app and PC website, and 3) launching more selection, including new channels and further penetrating Goods."

Shares of Groupon were sharply higher in premarket trading on Friday, up 7.58% to $7.38.

-- Written by Chris Ciaccia in New York

>Contact by Email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
GRPN $7.12 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs