Good morning. Here’s your daily roundup of equity research from the Street.
Groupon (GRPN): Benchmark took a trip down to Groupon’s Chicago office and came away with this: the IPO lock up (an overhang on the stock) expired Friday, improvements in marketing efficiency should continue, and big opportunities remain as Groupon leads online efforts into local commerce. Benchmark gives the company a buy rating, and a $20 price target.
Dollar General (DG): Dollar General has been impressively stable in a difficult macro environment. Same store sales grew for the fifth successive quarter. Despite DG’s cautious outlook, Credit Suisse expects positive trends to continue. EPS estimates for this year and next are increased, and the target price is raised to $48.50 from $40.
The Allstate Corporation (ALL): Allstate has had two good quarters in a row, with improved profitability and positive results. DB expects this trend to continue, due to Allstate’s approved rate gains. Buy rating is reiterated, and the price target is raised from $34 to $38.
Lululemon Athletica (LULU): Jefferies expects a narrow earnings beat later this week and guidance in line with expectations. However, they describe the stock as vulnerable to market volatility and say it is difficult to recommend. Despite a long term attractive view, the hold rating is maintained, and the price target is reduced to $76.
Don’t Miss: The Hottest Housing Markets In the World >