Groupon (GPRN) PT Raised By RBC Following Q4 Results

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Following the strong fourth-quarter results, RBC Capital’s Mark Mahaney has raised the price target on Groupon from $7 to $8.

Groupon price target has been raised from $7 to $8 by RBC Capital analyst Mark Mahaney, who maintained Sector Perform rating on the company, following the fourth-quarter results, in a report issued on Friday. On Friday, Groupon closed up 6.84% at $7.97, and year to date the stock is down over 3%.

Impressive 4Q numbers from Groupon

In the report, Mahaney noted few key takeaway from the Groupon’s fourth-quarter earnings report. Firstly, Groupon witnessed a continued growth in the consumer platform with subscribers totaling more than 260 million, 160 million plus unique visitors and 54 million active customers.

Secondly, Mahaney talked about the strong growth in the gross billings, which shows the total value of the goods and services purchased. For the quarter, Groupon witnessed a 31% year over year rise in the gross billings. Billings for North America were up 20%, for EMEA it was up 8% while for the Rest of the World (ROW) it increased by 154%.

As the third takeaway, Mahaney talked about the improving North American Local Billings, North American Goods Gross Margin, and the ROW. Local billing for North America was up 14% year over year while Goods gross margin for the region improved by 9%.

No details on Ticket Monster sale

Groupon, during the earnings call, gave no details and update on the sale its subsidiary, Ticket Monster. The company said that it is still too early to comment on the matter, and the process in still under consideration.

Lastly, Mahaney talked about the Groupon’s share repurchases program noting that the company repurchased around 1.2 million shares including $8.1 million of its Class A common stock in the December quarter.

Many analysts have come out with their verdict on Groupon recently. In a research note on Friday, analysts at B. Riley reiterated Buy rating on the company with a price target of $9.50. Analysts at Deutsche Bank, in a research note on February 10th, gave a price target of $8 with a Buy rating. Brean Capital analysts gave $11 price target to Groupon with a rating of Buy, in a note issued on February 9th. In a research note on January 30th, Ascendiant Capital Markets upgraded the stock from a Sell to a Buy rating. Presently, Groupon has an average rating of Buy and a consensus price target of $8.82.

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