Morgan Stanley Gets a Little Less Neutral on Groupon, Says Street May Soon Begin to Price in 'Sustained Recovery'
Morgan Stanley analyst Scot Devitt may be pushing shares of Groupon (NASDAQ: GRPN) higher Monday afternoon following a reassuring note earlier.
Groupon shares last traded at $7.74, up nearly 1.2 percent from Friday's close.
Devitt is optimistic on Groupon, citing management's efforts to focus on long-term opportunities moving forward. The analyst believes the market will eventually begin to price in what will be a sustained recovery.
On the less bullish side of things, Devitt pointed at a “lack of visibility” in Groupon's international businesses; he feels this remains an overhang for Groupon. Although Devitt likes management's efforts to address concerns in Europe, he warned customer losses could slow the initiative.
Morgan Stanley maintains an Equalweight rating; Devitt boosted his fair value estimate on Groupon to $9.
Shares of Groupon are up 57 percent on a year-to-date basis.
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