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Investing.com - Roth/MKM raised its price target on Groupon stock (NASDAQ:GRPN) to $47.00 from $33.00 on Friday, while maintaining a Buy rating on the e-commerce marketplace. The stock, currently trading at $37.03 with a market capitalization of $1.47 billion, has already delivered an impressive 204% return year-to-date. InvestingPro data reveals 14 additional investment insights for this stock.
The price target increase reflects Roth/MKM’s "increasing confidence" that Groupon’s turnaround strategy will generate accelerating growth in revenue, Adjusted EBITDA, and free cash flow in the coming years. The company maintains impressive gross profit margins of 90.4%, and analysts tracked by InvestingPro expect profitability to return this fiscal year.
The new target is supported by a discounted cash flow analysis conducted by the research firm, which evaluated the company’s financial trajectory and growth potential.
Roth/MKM’s analysis assumes that by late 2027, visibility on Groupon’s 2028 results will be strong enough to support a stock price exceeding $60 per share.
The $47 price target represents that projected 2027 valuation discounted back two years at a rate of approximately 12%, according to the firm’s research note released Friday.
In other recent news, Groupon Inc . 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. In a strategic financial move, Groupon announced agreements to exchange $170 million of its existing convertible notes for new 2030 convertible notes. This exchange involves $20 million of 2026 notes and $150 million of 2027 notes for $244.07 million in aggregate principal of the new notes.
Analyst firms have updated their outlooks on Groupon, with Northland raising the stock price target to $35 from $30, maintaining an Outperform rating due to confidence in the company’s growth strategy. Conversely, Goldman Sachs increased its price target to $15 while retaining a Sell rating, despite acknowledging positive aspects of Groupon’s recent performance. Additionally, Groupon’s recent sale of Giftcloud for €15.5 million is expected to impact 2025’s revenue and adjusted EBITDA, yet the company has maintained its revenue guidance. These developments reflect Groupon’s ongoing efforts to stabilize and grow its business amid changing market dynamics.
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