Unwarranted Fear Creates Buying Opportunity For Groupon Shares - $15 Near Term Target

Last November, in a post entitled “Numbers Behind Groupon’s Business Warrant Caution After First Day Pop”, I cautioned investors that the IPO of daily deal leader Groupon (GRPN) looked sky-high at the initial offer price of $20 per share, which valued the company at an astounding $13 billion:

By Helix Investment Management:Every public (as well as private) company operates in a slightly different way. There are nuances in each business model and strategy, nuances that take time to understand and evaluate. And in this article, we would like to discuss one of the most misunderstood companies on the market today: Groupon (GRPN). Groupon has had a tumultuous history since its founding in 2008.

Evercore Partners analyst Ken Sena this morning chopped his rating on Groupon shares to Underweight from Equal Weight, setting a new target price of $3, down from $6.50. Sena concedes in a research note this morning that the downgrade might appear later given the stock's recent decline, but he sees risk [...]

(Reuters) - Groupon Inc shares jumped 22 percent in premarket trade on Tuesday after the daily deals company posted its first quarterly profit as it signed up more customers and merchants. "While billings, revenue, margins, and guidance all met or exceeded, signs of accelerated North American revenue shows that the company's technology efforts around personalization and, to a lesser extent, mobile and rewards, are paying off," Evercore Partners analyst Ken Sena wrote in a note. Sena raised his price target on the stock to $17 from $15 and kept a "buy" rating. ...

By Sankrant Sanu:About a month ago, we had pointed out that Groupon (GRPN) shares were significantly undervalued and there was profit to be made from investor fears. We had suggested that:

By Benjamin Goldman:Groupon (GRPN) shares closed at $24.58 at the close of February 8th trading. At the close of April 17th, the share price dropped to $12.58, down 48.8 percent. During this time, we have seen Groupon miss earnings and then have to restate earnings, but the vast majority of the drop came from a consistent bearish influence during a time where the Nasdaq was up 4.34 percent.

Evercore Partners analyst Ken Sena reduced his rating on Yahoo to Equal Weight from Overweight, despite the potential acquisition of the company, based on his concern about the possibility that the company will choose to do a PIPE (Private Investment in Public Equity) deal. That approach, in which the company would privately sell a large ...