Groupon selloff today a buying opportunity, says Piper Jaffray
Piper Jaffray analyst Sam Kemp recommends using the selloff today in shares of Groupon as a buying opportunity. The stock is down 5% on data from a third-party scraping source suggesting the company had a weak November, Kemp tells investors in a research note. He believes third-party scraping data for Groupon has become ineffective since the company has shifted toward Groupon+. As Groupon+ becomes more successful, it will result in lower engagement of the traditional vouchers that these scrapers track, the analyst contends. As such, he believes data suggesting weak trends is likely actually suggesting strong adoption of Groupon+, which Kemp views as positive. The analyst reiterates an Overweight rating on Groupon with a $6.25 price target.