Groupon is blessed with loyal buyers who are repeatedly visiting the site despite the concerns that the interest in the platform will gradually decline, noted Wunderlich Securities. In a recent report, analyst Blake Harper at Wunderlich Securities upgraded the stock to Buy from Hold, and raised the price target to $10  from $6.

More repeat buyers

According to Harper, “Our survey results show that 78% of respondents who recently purchased a Groupon intend to purchase another one within three months.” For the survey, Harper took around 307 U.S. adults into consideration, who purchased from Groupon within the past year.

According to Harper, all 307 respondents nodded in “Yes” when they were asked about purchasing a Groupon within the past year. The total sample survey consisted of 192 women and 115 men in the United States, with 306 between the ages of 18-64 and one above 64 years of age. The fact that larger number of Groupon users are now seeing the company as something more than simply a daily email offer company has encouraged the analyst.

According to the data, repeat buying is likely to strengthen over the next three and twelve months, particularly within Groupon’s local deals category.

Groupon more successful with “Pull” strategy

Harper noted that “Email” or the company’s “Push” strategy has dropped 20%-25% of the transactions for the past four months, and is believed to stick around that level for the considerable future. Harper believes that the “Pull” strategy has performed better following the transition period, and the survey results show that  consumers are more likely to go directly to Groupon for deals.

Groupon posted a 20% rise in the quarterly revenue in February. Furthermore, the company stated that active customers who bought voucher or good within the past year have surged by nine million to 53.9 million in total.

Groupon has mixed ratings from analysts, with half assigning it a Buy rating, while the other half call it a Hold. Groupon shares are down 2% over the last three months compared to a drop of 1% for the broader S&P 500, according to a report from Market Watch.

On Wednesday, Groupon shares closed up 2.38% to $7.74, while year to date the stock is down almost 6%.