Boston, MA 07/08/2014 (wallstreetpr) – Shares of daily deals provider, Groupon Inc (NASDAQ:GRPN), are expected to touch 9.50 per share within the next 12 months, according to analysts at B. Riley. The analysts also upgraded the stock to a Buy, citing operational improvements and various encouraging developments in the company. They expect the developments to support massive organic growth and margin expansion.
The analysts said the company is entering a period of easier yearly performance comparison. They previously had a price target of $6 on the stock of Groupon (GRPN).
The latest development reflects a change of heart at B. Riley because they recently chopped their price target on the stock from $8 per share to $6 on a note issued in May.
Changing Wall Street views
Groupon Inc (NASDAQ:GRPN) appears to be winning confidence of experts in Wall Street given that a number of analysts have recently raised their expectations in the company. For example, analysts at Deutsche Bank rates, the stock of Groupon a Buy and they have a price target of $8 on the stock.
At Goldman Sachs Group Inc (NYSE:GS), Groupon carries a price target of $8 per share.
The stock has an average price target of $9.50.
Groupon Inc (NASDAQ:GRPN) exceeded expectation in its 1Q2014 financial reporting. The company suffered a loss of $0.01 per share at a time when Wall Street expected a loss of $0.03 per share. Revenue also exceeded the consensus estimate to become at $757.60 million, ahead of the estimated $738.40 million. Revenue was up 26 percent in the most recent quarter compared to the same period a year earlier.
The noted revenue growth in the company is a result of aggressive operational improvement that has seen the company increase its offerings while attracting more users through personalized platforms that can be accessed on mobile.
Groupon Inc (NASDAQ:GRPN) continues to expand its geographical coverage amid encouraging response in the international markets.