Wunderlich Securities upgraded Groupon Inc GRPN to a Buy from a Hold this morning, while also raising its price target for the daily deal site to $10 from $6 prior.
The baseline of Wunderlich's analysis comes from a survey it conducted that suggests that 78 percent of respondents who recently purchased a Groupon intend to purchase another one in the next three months.
On the international business lines, Wunderlich said it expects Groupon to recoup 2-3x on its purchase of its Korean unit, which the company said it was in talks to sell. In India, however, Wunderlich saw the opportunity for Groupon's Indian unit to be quite large, reporting that the company may have even completed a VC investment.
Wunderlich said it was optimistic that Groupon would hit its FY17 targets, which include 20 percent revenue growth and 25 percent EBITDA growth. These figures support the new $10 price target.
Groupon is indicated 2.2 percent higher in early premarket trading to $7.73.
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