Brean Capital Reiterates Buy on Groupon Inc Following the Sale of Ticket Monster
In a research report issued today, Brean Capital analyst Tom Forte reiterated a Buy rating on Groupon Inc (NASDAQ:GRPN) after the company’s sale of Ticket Monster which removed some of the uncertainty coming from their first quarter results and opened up a buying opportunity. The analyst issued a price target of $11, implying an upside of 57% from current levels. Shares of Groupon are currently trading at $6.96, down $0.04, or -0.64%
Forte noted, “When considering the stock’s recent lackluster performance (down more than 10% since it reported 4Q14 results) and management’s updated guidance following the April 20th announcement of the Ticket Monster sale, we believe negative investor sentiment has created a buying opportunity leading into Groupon’s 1Q15 earnings results.”
Furthermore, “Some investors seem to believe that guidance suggests Groupon’s core business has deteriorated since February, when it first provided the full-year outlook. We do not see things that way, because if that were the case, then GRPN would have lowered its full-year adjusted EBITDA outlook when it updated guidance.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Tom Forte has a total average return of -1.7% and a 29.6% success rate. Forte has a -4.4% average return when recommending GRPN, and is ranked #2926 out of 3583 analysts.