UPDATE: Wunderlich Securities Initiates Groupon with Buy as Opportunity Outweighs Risk

In a report published Tuesday, Wunderlich Securities analyst Blake T. Harper initiated coverage on

with a Buy rating and $11.00 price target. In the report, Wunderlich Securities noted, “We believe the company's challenges, which include an evolving strategy and the lack of a permanent CEO, has left the stock undervalued, given the opportunity the company can address. We view Groupon as a marketing company for local businesses that has been transitioning away from the daily deals business model that it became famous for. We believe its shift to offering a deal bank of discounted goods and services to browse through is a more valuable revenue stream and a better value to its consumers, local merchants, and goods providers. While the company must execute on its Pull and Mobile strategies and improve its International operations, we believe the opportunity outweighs the risk.” Groupon closed on Monday at $8.67.