Brean Capital's Takeaway On Groupon Earnings
Groupon Inc (NASDAQ: GRPN) reported a mix bag of earnings on Thursday.
Brean Capital issued a report this morning summarizing and highlighting key takeaways from Groupon's earnings.
Brean Capital has rated Groupon a Buy with an $8 price target. This is an upside potential of 33 percent, when compared to the close on Thursday evening of $5.99.
A key takeaway was the double-digit growth of the North American market versus the 1.8 percent year-over-year increase from last quarter and Brean’s 5 percent target. The firm viewed this performance metric as a "pleasant surprise."
"Mobile Metrics Continue to Impress," as Groupon apps have been downloaded more than 100 million times; these transactions account for more than half of its revenues.
Brean noted that Groupon is one of Apple Pay’s launch partners. Such a move validates Groupon's mobile footprint and should bode well for the equity in the coming quarters.
Brean calculates that Groupon has spent $200 million of the $300 million allocated for buyback. The remaining $100 million will continue to be put to play in the coming four quarters.
The next catalyst on Groupon will be on November 11, its analyst day.
Shares of Groupon were up 19.8 percent at $7.18 on 2x average daily volume.
Latest Ratings for GRPN
Oct 2014 | Credit Suisse | Maintains | Neutral | |
Oct 2014 | Credit Suisse | Maintains | Neutral | |
Oct 2014 | Brean Capital | Initiates Coverage on | Buy |
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