GRPN: Groupon Stock Pops on Deal Data

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Shares of Groupon (GRPN) climbed almost 4% in Monday morning trading after an analyst said that the deal-of-the-day website showed a rising number of deals.

groupon-185In a research note obtained by TheStreet.com, Piper Jaffray analyst Gene Munster said that a deal tracking tool revealed that GRPB had steadily increased the amount of deals available on its site. “We view our findings as confirmation of the longer term trend of Groupon increasing its deal density, which moves the company closer to its goal of building the leading local deal marketplace,” Munster wrote.

“Separately, in the Mar-14 quarter, Groupon reported 200k deals on the network, up from 140k in the Dec-13 quarter,” Munster elaborated. “We expect that number will increase to 500k deals globally in 3-4 years, suggesting about 30% a year growth in the number of deals.”

Munster maintains an “Overweight” rating for Groupon stock. He also has a $16 price target for GRPN shares.

On Friday, GRPN closed at $6.15 per share.

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