Groupon Inc. (GRPN:US), the largest daily coupon website, rose the most in a month after Morgan Stanley analysts upgraded the stock to overweight from equalweight, citing international sales opportunities.
Groupon advanced 11 percent to $11.15 at the close in New York, for the biggest jump since May 14. The Chicago-based company’s shares have fallen 44 percent since an intial public offering in November.
The coupon site, which generates revenue by selling discounts -- known as Groupons -- from businesses such as restaurants and nail salons, is trying to rebuild investor confidence after losing about $5.8 billion in market value since the IPO. Revenue in the first quarter increased 89 percent to $559.3 million, with international accounting for 57 percent of sales during the period.
“Groupon has deployed systems in the U.S. that enhance its ability to send relevant and personalized deals,” which helped the company accelerate revenue growth in the first quarter, analysts Scott Devitt and Zachary Arrick, wrote in an investor note. “We view Groupon extending these systems to its international regions.”
To contact the reporter on this story: Niamh Ring in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Kevin Miller at email@example.com