Shares of Groupon Inc (NASDAQ:GRPN) are up more than 13 percent in midday trading after a big thumbs-up from a major hedge fund, and they aren’t the only ones who are warming up to Groupon stock. A report from analysts at Deutsche Bank AG (ETR:DBK) (FRA:DBK) (NYSE:DB) says they are also very positive about the company.

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On Monday, ValueWalk reported that Tiger Global bought nearly 10 percent of Groupon’s outstanding shares. The latest regulatory filing from the company shows that it holds 65 million shares of Groupon, in spite of the company’s slowdown in revenue growth and investigations into its accounting practices. Since Groupon Inc (NASDAQ:GRPN) went public one year ago, shares of its stock have dropped significantly in value.

The report from Deutsche Bank AG (ETR:DBK) (FRA:DBK) (NYSE:DB) analysts indicates that they believe that “the company could enter the sweet spot between a value-trap story and a ‘things are getting less worse’ story.” Deutsche Bank analysts say the most challenging part of dealing with Groupon Inc (NASDAQ:GRPN) shares right now is forecasting how many more negative trending quarters are coming up before stabilization of the company is achieved. They say that they are gradually warming up to the stock, but they’re not yet ready to upgrade it. Their price target is $4, which the stock came close to achieving in midday Tuesday trades.

The report from Deutsche Bank AG (ETR:DBK) (FRA:DBK) (NYSE:DB) says it’s important for investors to realize that Groupon Inc (NASDAQ:GRPN) is fairly stable from quarter to quarter, although it is decelerating from year to year. They also say that there are significant problems in Groupon’s European business, which they believe will take “several quarters” to correct. Deutsche Bank AG (ETR:DBK) (FRA:DBK) (NYSE:DB) analysts cite the company’s problems in Europe as the reason they are warming up rather than upgrading the stock. They say they “don’t want to jump in too early.” At this point, shares of the stock have not shifted from their “value trap” phase to their “second derivative improving” phase, so they don’t believe that investors should buy the stock just yet.