Goldman Sachs Reiterates Buy Rating, $13 PT on Groupon Ahead of 3Q13 Results

In a report published Monday, Goldman Sachs analyst Heath P. Terry reiterated a Buy rating and $13.00 price target on

. In the report, Goldman Sachs noted, “We expect Groupon's results to modestly exceed consensus expectations when it reports 3Q earnings on Thursday, November 7, as North America local business benefited from investments in SEO, mobile, and sales efficiencies, while international profitability continued to improve. We forecast revenue of $620mn vs. guidance of $585-635mn and consensus at $615mn. We expect CSOI of $51.6mn vs. guidance of $20-$40mn and consensus at $41mn. In addition, traffic was robust in 3Q on both desktop and mobile. We continue to believe the opportunity in local is significant and GRPN's critical mass of users and merchants gives it a meaningful advantage in addressing that opportunity. With the NA business providing the roadmap for international recovery, expectations conservative particularly for the current quarter, and valuation reasonable, we believe the risk/reward in owning GRPN remains favorable.” Groupon closed on Friday at $9.93.