NEW YORK (TheStreet) -- Shares of Groupon (GRPN) are gaining, up 3.85% to $7.82 in early market trading Monday, after the online discount retailer had its rating raised to "buy" from "neutral" by analysts at Bank of America/Merrill Lynch this morning.
Analysts at the firm also raised its price target to $9.50 per share from $8 per share, and said the company's "downward estimate revision cycle could be ending."
Bank of America/Merrill Lynch analysts said they believe the company's strategic asset value and the ability to keep up its growth will help the stock.
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The investment firm sees the progress in the company's turnaround as a positive, and expects Groupon to continue to benefit from its growing customer base.
Bank of America/Merrill Lynch added that reduction in e-mail headwinds will help the company grow local billings, which are expected to accelerate during the fourth quarter.
Separately, TheStreet Ratings team rates GROUPON INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate GROUPON INC (GRPN) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and feeble growth in its earnings per share."