Today, Arvind Bhatia of Sterne Agee & Leach, Inc. upgraded Groupon to "buy" from "neutral" with a $9 price target because he sees significant revenue potential from its new "local e-commerce marketplace" (Bloomberg, MarketWatch, Chicago Business Journal, Fox Business).
Bhatia said (via MarketWatch),
“We recognize that meaningful risks remain, the stock will be volatile and we may be a bit early,” he wrote, adding “However, we believe the risks are well known and largely priced in.”
So Groupon could be a longer-term growth play again. I remember when people thought Google would try to buy Groupon again when it was trading at 30-50 cents on the dollar relative to Google's $6 billion bid in 2010. Groupon is currently valued at $3.62 billion (via ycharts). Thoughts on that?
Previous posts for reference:
$GRPN Shoots Up 23% on Huge Volume, Lots of Speculation (Chart) (12/8/2012)
Groupon is Almost Trading at Cash and Book Value ($GRPN) (11/11/2012)