Update shared on12 Sep 2025
Fair value Increased 19%Analysts have raised Groupon's price target from $32.25 to $38.33 amid growing confidence in the company's turnaround, driven by clear operational momentum, improved fundamentals, and enhanced balance sheet flexibility following a successful refinancing.
Analyst Commentary
- Bullish analysts highlight that recent Q2 results confirm a business inflection and building operational momentum.
- Year-to-date share appreciation is seen as evidence of improving fundamentals, with further upside anticipated.
- The completion of an opportunistic and proactive financing transaction—with new 2030 notes—has simplified the capital structure and provided the company with enhanced financial flexibility.
- The financing deal is viewed as eliminating previous balance sheet overhangs and signals a shift in strategic focus from defense to offense.
- Analysts are increasingly confident in Groupon’s turnaround resulting in accelerating revenue, adjusted EBITDA, and free cash flow growth, with longer-term share valuation expectations rising substantially.
What's in the News
- Groupon is actively seeking M&A opportunities, with a disciplined approach to ensure value creation.
- The company did not repurchase any shares between April and June, but has completed the buyback of over 17 million shares (60.82% of the prior announced buyback).
- Effective September 1, Jiri Ponrt will become COO and Rana Kashyap will assume the CFO role.
- Groupon was dropped from multiple Russell Value Benchmarks and Microcap/Small Cap Value Indices.
- Groupon was added to the S&P Retail Select Industry Index.
Valuation Changes
Summary of Valuation Changes for Groupon
- The Consensus Analyst Price Target has significantly risen from $32.25 to $38.33.
- The Net Profit Margin for Groupon has significantly risen from 7.75% to 13.16%.
- The Future P/E for Groupon has significantly fallen from 31.33x to 22.13x.
Disclaimer
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