Piper Jaffray Analyst Optimistic About Groupon Inc (GRPN)
Analyst Gene Munster from Piper Jaffray upgraded Groupon Inc (NASDAQ:GRPN) to Overweight with a price target of $6, marking a 72% increase from current levels.
The analyst points to Groupon narrowing its product and regional focus to ensure they are working in areas they can be successful. The company’s smart initiative includes moving towards higher margin products and being established in 18 countries since last September.
Additionally, Munster is confident that Groupon’s investment of resources and dollars to drive growth in North American local deals will be successful. Lastly, he points out Groupon’s ability to “mature into a company that consistently drive higher rates of capital productivity” due to more thorough financial and operational standards.
According to TipRanks, Munster has a success rate of 61% with an average return of 16.1% per recommendation.