Deutsche Bank: Groupon Stock Is A Buy (And Worth $8.50)

In a report published Friday, Deutsche Bank analyst Ross Sandler re-initiated coverage of Groupon Inc (NASDAQ: GRPN) with a Buy rating and price target of $8.50, following the sale of the company's controlling stake in Ticket Monster as well as the announcement of the Q1 results.Although the announcement of the departure of Groupon's CFO earlier this week led to increased investor concerns, the analyst believes that the stock currently possesses a compelling risk/reward profile."Shares are likely to remain range-bound until we get to 3Q results and learn whether GRPN can "grow through the tough comp" in NA Local, which management has been confident it can achieve," Sandler said.The analyst also expressed optimism regarding the appointment of Rich Williams, President of North America for Groupon, as the company's COO, looking after global operations. It was under William's leadership that Groupon was able to improve its North American trajectory.In addition, "GRPN also stated that CFO Jason Child is stepping aside, but will remain at the company until the end of July in an advisory role. He will be replaced on an interim basis by Brian Kayman, VP, Tax and Treasurer," the Deutsche Bank report said.The company has reiterated its guidance for 2Q15 and 2015, while also increasing its share buyback authorization by $200 million to $500 million.