article : Competition Is Easing, GRPN Scale Is Real Advantage with Low Barriers to Entry link
By Rex Crum, MarketWatch
Earnings Outlook Archives | Email alerts
Feb. 27, 2013, 6:00 a.m. EST
Groupon’s results to key on new sales efforts
Stock has surged from its low as Street sentiment has improved
Sterne Agee analyst Arvind Bhatia also upgraded Groupon’s stock to buy rating this month, setting a price target of $9 a share. Bhatia sees signs of stability in Groupon’s daily deal offerings, as well as increases in direct revenue among the main drivers of the company’s results as it moves toward relying more on search engine-and-direct site traffic for its business.
“Our view is the company’s evolution beyond its core push email business to pull will ultimately prove successful,” Bhatia wrote in a note on Monday. “Competition is easing a bit and we believe underscores how Groupon’s scale is a real advantage in a business with low barriers to entry.”