While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of Groupon, Inc. (NASDAQ:GRPN) climbed 3% this morning after Northland Capital Markets initiated coverage on the daily-deals specialist with a buy rating.

So what: Along with the buy rating, Darren Aftahi planted a price target of $13 on the stock, representing about 22% worth of upside to yesterday's close. The stock has been sluggish in recent months on concerns over waning demand, but Aftahi believes that Groupon's transition from a pure "daily deals" play into a more diversified marketplace should help reignite its breakneck growth.

Now what: Northland thinks management's strategy translates well to both mobile and local offerings. "[Groupon's] recent platform expansion to include brand discounts and coupons (Freebies), enhanced contextual search, emphasis on mobile, and eventual broader expansion into discounted 'productized services' should increasingly make it a destination platform, connecting engaged consumers searching for local deals and merchants looking for a broad channel to promote local commerce offerings," noted Northland. Of course, with the stock still trading at a forward P/E of more than 40, much of that optimism might already be baked into the valuation. 

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.