Groupon’s stock picked up more than 3 percent in regular trading today following positive analyst comments regarding its future growth potential. Deutsche Bank reiterated a positive rating on the company, which pushed its stock higher throughout the day. It neared a 5 percent gain midday, but pulled back mildly in later trading.
Following its most recent earnings report, Groupon took a pounding, falling from more than $10 per share to a flat $8. Its stock fell under the $8-dollar mark the next day.
The reiterated analyst note of positivity is therefore a ray of light for the company, especially given that Deutsche Bank indicated that its growth concerns had diminished after speaking to the firm.
Groupon beat both revenue and profit expectations in the fourth quarter of 2013, but low growth promises, especially relating to current year profitability, were disappointing to investors. Groupon’s stock initially soared as investors saw the raw revenue and EPS figures, but cratered when they dug deeper and saw the projections included in the report.