UPDATE: Sterne Agee Maintains Groupon at Buy; Expects Meaningful Profit Recovery

In a report published Thursday, Sterne Agee maintained its Buy rating on Groupon

and maintained its $9.00 price target. Sterne Agee reported that, “While 4Q will disappoint the Street as operating profit was below expectations, we believe shares are attractive for longer-term investors willing to play the turnaround. There were signs of improvement exiting 4Q and also to-date in 1Q. 1Q'13 and full year 2013 guidance implies a gradual profit recovery in the coming quarters. Demand reaccelerated as 4Q billings grew 25% sequentially after two consecutive quarters of 5% declines. However, higher-than-expected op ex cut into profits.” Groupon shares closed at $5.98 on Wednesday.