Groupon price target raised to $4 from $3 at Goldman Sachs

Goldman Sachs analyst Eric Sheridan raised the firm’s price target on Groupon to $4 from $3 but keeps a Sell rating on the shares. The company reported operating results that were better than expected on revenue and executed on its turnaround strategy to increase merchant supply, but the cash needs from working capital caused free cash flow to land well below estimates in Q2, the analyst tells investors in a research note. In the short term, investor debates will remain squarely centered on the trajectory of Local billings and on the progress made against cost reduction efforts, the firm adds.