GRPN - Why E-Commerce Marketplace Groupon's Shares Are Surging Today | Benzinga
Roth MKM analyst Sean McGowan initiated coverage on Groupon Inc (NASDAQ: GRPN) with a Buy rating and price target of $30.
The analyst expects the company to witness higher demand amid high inflation and growing signs of recession.
McGowan also expects cost savings, increased gross margins, and strong cash flow to drive valuation further.
The analyst highlighted the company's cost reduction initiative of saving over $250 million and focusing more on profits than sales growth.
McGowan notes that the company has not repurchased shares since Q4 2019, despite a share repurchase authorization of $245 million, and assumes buybacks will begin in mid-2024.
The analyst estimates revenue of $549.2 million (vs. consensus: $511.0 million), adjusted EBITDA of $83.6 ...