Groupon’s Turnaround Story: Improved Execution, Stronger Balance Sheet, and New Growth Phase Support Buy Rating

Northland Securities analyst Bobby Brooks maintained a Buy rating on Groupon today and set a price target of $42.00.

Bobby Brooks has given his Buy rating due to a combination of factors that, in his view, make Groupon one of the more attractive risk‑reward opportunities in his coverage. He points to clear evidence of a successful turnaround, including a return to billings growth, a sustained rebound in North American active customers after a long decline, and consistent double‑digit growth in local billings. He also highlights that management has moved from a period of uneven performance to a phase of steady execution, while significantly improving the balance sheet through a refinancing that extends most debt maturities to 2030 and removes restrictive covenants. This financial flexibility, together with the potential use of the company’s sizeable share repurchase authorization, supports his view of meaningful upside as the business enters a new growth phase.

Brooks further notes that there are still operational levers to pull, such as enhancing merchant support—particularly for smaller local businesses—which he believes represents “low‑hanging fruit” that can drive additional growth. He emphasizes his confidence in the current leadership team, which he sees as highly aligned and capable based on the progress already made. Finally, he expects management to increase its engagement with the investment community in 2026, improving investor awareness of the transformed story and potentially attracting more stable, long‑term shareholders. Taken together, these elements underpin his conviction that now is an attractive entry point for investors and justify his Buy rating on Groupon shares.

In another report released yesterday, Roth MKM also maintained a Buy rating on the stock with a $47.00 price target.