Groupon Investors: Brean Reiterates Buy, Sees $11/Share

In a report published Thursday, Brean Capital analyst Tom Forte reiterated a Buy rating on Groupon Inc GRPN, with an $11 price target. The company announced management changes on June 3, along with a buyback plan, while reiterating its 2Q15 and FY2015 guidance.

According to the Brean Capital report, "Rich Williams was promoted to COO from President of North America. Jason Child, Groupon's CFO, will be leaving the company in late July 2015 to join Jawbone (private) as its CFO. Brian Kayman, VP of Tax and Treasury, was named interim CFO (effective immediately) until Groupon finds a permanent replacement."

In addition, Groupon intends to increase its buyback plan from $300 million to $500 million. The analyst believes that the reiteration of the guidance for 2Q15 and FY2015 would bolster the stock.

"While sorry to see Mr. Child leave Groupon, because we believe he performed admirably during an important and challenging period of its history (including its November 2011 IPO), we are confident the company will find an able permanent replacement," Forte said.