Shares of Groupon Inc. are up 5.2% in midday trading Monday after analysts at Morgan Stanley upgraded the stock to equal-weight from underweight. The analysts, led by Jonathan Lanterman, believe that the post-earnings selloff has been overdone, with shares down 14% since the company reported an earnings miss in mid-February. The company also issued disappointing guidance at the time. “We acknowledge that 2018 could see gross billings and revenue growth metrics look unappealing with success of Groupon+ and the shift to [third-party] goods, but the company focuses on gross profit growth as a better indicator of the health of the business and we agree,” Lanterman wrote. He raised his price target on shares to $4.40 from $4.30. Groupon shares are up 12% in the past 12 months, while the S&P 500 Index has gained 14%.
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