Bank Of America Has Good Feeling About Groupon Inc Following Management Meeting

In a report published Friday, Bank of America analyst Paul Bieber reiterated a Neutral rating and $7.50 price target on

. In the report, Bank of America noted, “Yesterday we met with Eric Lefkofsky (CEO), Jason Child (CFO), Genny Konz (IR) & Lindsey Moore (IR) at their headquarters in Chicago for a general update. While no new financial info was provided, management seemed upbeat on trajectory toward the company's 3 key financial objectives for 2014 and the large long-term opportunity (all things local). Key discussion areas included overcoming email headwinds, increasing product selection, and incremental growth initiatives like local marketing, merchant pages, and Gnome. Risks remain competition (which can impact quarterly deal margins) and goods execution (customer make-goods in 4Q last year were expensive). In our opinion, the company was spread a little too thin in its early years, and management seems more focused on improving execution vs all-out growth; a good sign. Groupon will host an analyst day on 11/11, which suggests to us that management is more comfortable with the business.” Groupon closed on Thursday at $7.04.