Data Shows Groupon (GRPN) Turnaround Continues - Piper Jaffray

Piper Jaffray analyst Gene Munster reiterated an Overweight rating and $16 price target Groupon, Inc. (NASDAQ: GRPN) Monday saying tracking marketplace deals suggest the slow turnaround continues.

Munster said, "We remain buyers of GRPN. Our proprietary deal tracking has showed the number of deals available on Groupon steadily increasing since Oct-13, when we began this analyses. We view our findings as confirmation of the longer term trend of Groupon increasing its deal density, which moves the company closer to its goal of building the leading local deal marketplace. This is different than Groupon's historical push-email business, moving toward a pull model driven by consumer demand."

He added, "Separately, in the Mar-14 quarter, Groupon reported 200k deals on the network, up from 140k in the Dec-13 quarter. We expect that number will increase to 500k deals globally in 3-4 years, suggesting about 30% a year growth in the number of deals. Groupon does not disclose the percentage of business from the pull marketplace, but reported 9% of total traffic in North America came from search (pull marketplace)."

For an analyst ratings summary and ratings history on Groupon, Inc. click here. For more ratings news on Groupon, Inc. click here.

Shares of Groupon, Inc. closed at $6.15 yesterday.

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