Brean's Forte: Buy Groupon On Valuation, Mobile Story

In a report published Thursday, Brean Capital analyst Tom Forte maintained a Buy rating on

, with a price target of $11. "Groupon operates the 10th largest ecommerce platform, according to IDC, and connects 48.1MM active customers with more than 950,000 merchants (since its inception)," analyst Tom Forte wrote. The company's app has been downloaded by about 105 million consumers worldwide. In the report Brean Capital noted, "Groupon was one of the early adopters of Apple Pay, including enabling consumers to purchase Groupon's on their mobile devices with Apple Pay. More than half of its transactions are on mobile devices." Groupon is the latest consumer technology company to launch an app for the Apple Watch introduced recently by

(rated Buy). Other companies that have launched apps for this product include

, (rated Buy),

(rated Buy) and

(rated Buy). In its press release, Groupon said that its Apple Watch app would allow notifications for nearby deals, enable consumers to "browse curated offers for activities, dining, and sightseeing; and offer an easy way for consumers to purchase daily deals." Forte believes that this launch by Groupon strengthens its mobile story, which was already "compelling." Groupon's shares have declined more than 35 percent since February 2015. Forte considers the company's shares as "oversold at current levels" and recommends investors to "take advantage of this daily-deals type discount and purchase shares."