Groupon Inc. is an online ecommerce platform available in more than 28 countries. The website offers air travel tickets, restaurant bookings, activities and miscellaneous services. Wedbush has recently setup their Groupon analysis model and has kick started coverage with a Neutral rating. The price target for the company is placed at $4.
Analyst Aaron Turner of Wedbush admits that there lies a lot of potential in the stock. He believes the e-commerce business website is a place of choice for millions of people to shop from globally and provides affordable deals with attractive prices. The discounts offered and competitive prices have yielded a fair share of benefits for the website by creating long term customers. There has been, however, a lack of new customers which has affected the stock prices fairly. The analyst believes that the recently appointed CEO Rich Williams could introduce marketing and operational strategies to change fortunes for the stock, but, in absence of any further signs of such a happening, he maintained a conservative front.
Groupon shares have accelerated by about 40% since the beginning of the current year. The greatest catalyst for such has been the rumors regarding Alibaba’s Groupon acquisition plans which boosted the stock of the company. Alibaba holds 5.6% stake in the company, which, according to pundits is Alibaba’s way of testing waters before a full blow acquisition, however, any material evidence or official word has not been provided, yet.
The analyst opinion for the stock is concentrated towards a Hold with 15 ratings. There is only a single Strong Buy rating and three Buy ratings. The stock also has two underperform ratings. The stock is currently trading at $4.18 during premarket hours.