Northland raises Groupon stock price target to $35 from $30

On Tuesday, analysts at Northland raised the price target for Groupon, Inc. (NASDAQ: GRPN) stock to $35 from a previous target of $30. The firm maintained its Outperform rating on the stock, reflecting confidence in the company’s future growth prospects. According to InvestingPro data, the stock appears overvalued at current levels, though analysts maintain targets ranging from $15 to $33.

Groupon’s first-quarter results for 2025 marked a significant turning point for the company, according to Northland analysts. The firm noted that Groupon’s management has transitioned from a defensive strategy to an offensive approach, focusing on growth with a more efficient cost structure and enhanced platform. The company maintains impressive gross profit margins of over 90%, demonstrating strong operational efficiency. InvestingPro analysis reveals 12 additional key insights about Groupon’s performance and outlook.

The analysts highlighted that Groupon’s year-to-date performance may be challenging to replicate. However, they anticipate continued positive execution, which they believe could drive the stock higher in the future.

The strategic shift comes after two years of stabilizing and rebuilding efforts by Groupon. The company is now focused on reigniting growth, as emphasized by Northland analysts in their commentary.

Groupon’s stock, which trades on the NASDAQ under the ticker GRPN, has been closely watched by investors as the company implements its new growth-focused strategy.

In other recent news, Groupon Inc (NASDAQ:GRPN). reported its first-quarter 2025 earnings, surpassing Wall Street expectations with an earnings per share (EPS) of $0.17, compared to a forecast of -$0.10. The company’s revenue also exceeded projections, reaching $117.19 million against an anticipated $115.67 million. This positive performance led Groupon to raise its full-year billings growth guidance from 2-4% to 3-5%. Despite the sale of Giftcloud in April for €15.5 million, which is expected to reduce 2025’s revenue and adjusted EBITDA by $6 million and $4 million respectively, Groupon maintained its revenue and adjusted EBITDA guidance for the year. Analyst Eric Sheridan from Goldman Sachs raised the firm’s price target for Groupon to $15.00, up from the previous $9.00, while maintaining a Sell rating. Sheridan noted improvements in Groupon’s platform, including a 43% year-over-year increase in brands generating over $1 million in North America billings. Groupon’s North America Local Billings showed an 11% year-over-year growth, marking the first instance of double-digit growth in this segment since 2017. The company continues to focus on platform modernization and AI integration to enhance customer and merchant engagement.

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