Groupon Inc (NASDAQ:GRPN) stock was on the move today following an upgrade from analysts at B. Riley.
The B. Riley analysts upgraded GRPN stock from a “Neutral” rating to a “Buy” rating. The reason for the upgrade was Groupon Inc’s increasing profitability and customer growth. The firm is also expecting the company to increase marketing due to these factors.
To go along with the upgrade of Groupon Inc, B. Riley analysts also set a new price target for GRPN. This new price target is $5.50, which is up $1.30 from its previous price target of $4.20 for the stock.
B. Riley analysts also note that Groupon Inc’s international business could be a large boon to the stock. The firm estimates that the business could bring an additional value of $1 per share in the event of a sale, reports TheStreet.com.
B. Riley’s price target of $5.50 is above the average price target for Groupon Inc. The current average price target for GRPN stock is $4.20. The company’s 52-week high was $5.94 on Aug. 9, 2016. The stock’s closing price for Wednesday was $3.44.
Groupon Inc last reported earnings on May 3, 2017. The company’s earnings report for first quarter of 2017 saw it reporting revenue of $673.63 million, which was below Wall Street’s estimate of $724.36 million for the quarter. However, its earnings per share for the first quarter of 2017 was one penny. This came in above analysts’ losses per share estimate of one penny for GRPN’s first quarter of the year.
GRPN stock was up 3% as of noon Thursday.
As of this writing, William White did not hold a position in any of the aforementioned securities.
