Wunderlich Provides Outlook On Groupon Ahead Of Q2 Earnings

In a note released Wednesday morning, Wunderlich analyst Blake T. Harper provided an overview of Groupon Inc (NASDAQ: GRPN) ahead of the company's second quarter earnings report.

Harper expects the results to be in-line and likely driven by the Goods business. However, he feels the company's goal of double-digit growth in Local in the second half of 2014 may prove to be "ambitious."

Harper currently rates Groupon a Hold with a $6 price target. He has also listed five key points to keep in mind:

• Local growth is needed to lift the stock in the second half.
  
• Goods growth won't be able to offset a lack of growth in local.
  
• Apple Pay could provide a boost to the active customer count.
  
• The company has introduced new apps and features, namely an app called Snap, which allows users to get cash back by taking a picture of receipts.
  
• The stock appears to be fairly valued on a sum of the parts basis.

Groupon closed Tuesday at $6.00.