UPDATE: Bank Of America Upgrades Groupon As Recent Progress Validates Turnaround

On Monday, analysts at Bank of America upgraded shares of Groupon Inc (NASDAQ: GRPN) from Neutral to Buy and raised the price target from $8 to $9.50.

Paul Bieber finds the recent progress the company has made validates its turnaround and feels "the downward estimate revision cycle could be ending."

Bieber highlighted positives moving forward:

1. The company has a large and growing customer base.
2. E-mail headwinds are diminishing, which should aid local billings growth.
3. New disclosures indicate stable cohort spending.
4. Easy local billings comps and potential fourth quarter acceleration.
5. Ticket Monster growth acceleration over the last several quarters has increased its value.
6. Groupon has strategic asset value. With the stock down 36 percent year-to-date "vs. NASD +14 percent," Bieber feels sentiment is poised to turn more positive in 2015.

Shares of Groupon recently traded at $7.84, up 4 percent Monday morning.