Brean Capital Likes Groupon Into Quarterly Results

Groupon Inc GRPN is scheduled to report earnings on Thursday, with analysts expecting EPS of $0.03. Brean Capital is recommending traders buy shares of Groupon in advance, noting that the quarter includes record revenue from Black Friday and Cyber Monday sales, in addition to talk of Groupon divesting some or all of its Ticket Monster holdings.

Brean expects project sales, adjusted EBITDA and non-GAAP EPS to beat consensus estimates. Additionally, the analysts expect $27.55 million in shares to be bought back, part of a previously announced $300 million in repurchase authorization.

Brean expects volatility to spike around Groupon’s earnings. Analysts note that the average one-day move after earnings in Groupon is 17.9 percent since its November 2011 IPO. Analysts say that shares move up or down at least 10 percent more than 83 percent of the time.

Brean reiterated its Buy rating and has an $11 price target on the stock.