Wunderlich Securities Says Strong Holiday Weekend Bodes Well for Groupon

In a report published Wednesday, Wunderlich Securities analyst Blake T. Harper reiterated a Buy rating and $13.00 price target on Groupon GRPN. In the report, Wunderlich Securities noted, “Groupon's billings for the four day holiday weekend were up almost 30% from last year, which were likely helped by Groupon Bucks promotions and a dedicated gift shopping category (toys, electronics and home goods were top sellers). We had estimated Q4 bookings growth of 10% Y/Y with a consolidated take rate of 43% for revenue growth of 13% Y/Y, which is at the mid-point of the guidance range. While the four day weekend is a small sample and likely highest growth window of the quarter, it bodes well for the company, especially given the slower billings growth in Q3.” Groupon closed on Tuesday at $9.09.