UPDATE: B. Riley & Co. Upgrades Groupon

In a note released Tuesday, B. Riley and Co. analyst Sameet Sinha upgraded Groupon GRPN from Neutral to Buy and raised the price target from $6.00 to $9.50.

Sinha says Groupon is heading into a period of favorable year-over-year comps and is expecting organic billings to accelerate through the year. Additionally, he sees operational and strategic improvements as aiding organic growth and margin expansion through 2014 and 2015.

Despite this upgrade, shares of Groupon were trading down 2.5 percent upon last check.