NEW YORK (TheStreet) -- Shares of Groupon  (GRPN - Get Report)  were advancing 5.79% to $5.30 in pre-market trading on Monday as Wedbush raised its rating on the stock to "outperform" from "neutral" this morning. 

The firm also upped its price target to $6.50 from $4.50 on shares of the Chicago-based e-commerce marketplace, TheFly reports. 

Groupon currently has a "large valuation discrepancy" relative to peers, but its 2016 fiscal third-quarter earnings should help close that gap, Wedbush said. 

The company's accelerating site traffic growth and improving deal inventory should result in better-than-expected third-quarter results for Groupon, the firm added. 

Groupon will report third quarter earnings after next Wednesday's closing bell. 

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

The team rates Groupon as a Sell with a ratings score of D. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.

You can view the full analysis from the report here: GRPN

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