Groupon Inc (NASDAQ: GRPN) has already gained about 50% versus its year-to-date low but a Roth MKM analyst is convinced it’s not out of juice just yet.
Groupon stock could climb further to $28The eCommerce marketplace is expected to report its quarterly financial results on March 15th. Consensus is for it to lose 22 cents a share versus 53 cents per share a year ago.
Ahead of its earnings report, Sean McGowan of Roth MKM recommends that investors consider buying Groupon stock as it has upside to $28 – up another 55% from here.
The analyst expects $GRPN to soon return to revenue growth that will help boost its share price.
Meaningfully reduced cost structure also contributed to his positive view on Groupon shares that do no currently pay a dividend yield.
What else could help $GRPN moving forward?Sean McGowan does not expect Groupon Inc to report an increase in revenue in its fiscal Q4 – but the guidance, he added, would point to potential growth in 2024.
The Roth MKM analyst is confident that $GRPN will benefit in terms of profitability as the management delivers on its commitment to lower operating expenses.
He recommends buying Groupon shares despite the recent rally because the Nasdaq listed firm has significantly improved its contribution margin.
Lastly, McGowan sees Groupon stock as undervalued versus its peers at current multiple which presents an opportunity to invest in a quality name at a reasonable discount.
The post Is Groupon stock worth buying ahead of its Q4 earnings report? appeared first on Invezz
