Mor­gan Stan­ley ana­lyst Scott Devitt upgrad­ed GROUPON to over­weight.

"Groupon has emerged as the lead­ing local eCom­merce com­pa­ny in an indus­try with sig­nif­i­cant bar­ri­ers to scale," Devitt wrote in a note to clients. "Its advan­tage due to scale (largest mer­chant and cus­tomer base) and tech­nol­o­gy (8 acqui­si­tions YTD) has enabled it to accel­er­ate NA rev­enue growth while improv­ing

its margins."