Groupon shares, which have been tattered since the daily deals company went public 19 months ago, spiked 11.5 percent yesterday after one analyst said it was making progress in mobile.
Ross Sandler, an analyst at Deutsche Bank, raised his rating on the Chicago-based company to a buy and his price target to $10, up from $6.
Shares rose yesterday to $7.65.
“Groupon is surprisingly the most mobile-penetrated e-commerce company we track,” Sandler wrote in a note to clients.
Groupon should soon be ready to grow its billings by more than 20 percent over the next 2 1/2 years, Sandler wrote.
Rather than pushing out at least seven email alerts per day with daily deals directed at potential customers, the analyst added, Groupon plans on pulling people in using personalized dealing.
Last February, Groupon fired its CEO and co-founder Andrew Mason one day after it released a dismal fourth-quarter earnings report.