Groupon Adds 9% After Increased Price Target

(RTTNews) - Shares of online discount product and service platform, Groupon, Inc. (GRPN) are rising more than 9% Monday morning after Prescience Point Capital Management updated its price target on Groupon.

The update is based on the information that the value of the company's stake in the European payments company SumUp is worth more than Groupon's entire market capitalization, Prescience Point said.

"We believe that Groupon's SumUp investment alone is worth almost $33 per share. This means that investors who purchase Groupon shares today, which are currently trading at around $27 per share, are buying its SumUp investment at a discount, and on top of this, are receiving Groupon's core business, which is poised for accelerating growth and profitability, essentially for free," said Eiad Asbahi, Founder and Managing Partner of Prescience Point.

GRPN, currently at $29.78, has been trading in the range of $19- $64.69 in the past 52 weeks.