Jake Fuller, an analyst from BTIG, maintained the Buy rating on Match Group (MTCH – Research Report). The associated price target is $50.00.
Jake Fuller of BTIG has given his Buy rating due to a nuanced view of Match Group’s prospects. Despite the disappointments in Tinder’s payer growth, the overall financial estimates for 2024 remain relatively stable. Fuller acknowledges the concerns about market saturation as reflected in the weaker than expected Tinder subscriber additions and the increased marketing spend. However, he sees these factors as already priced into the market expectations, with the stock not experiencing a negative reaction to the news.
Furthermore, Fuller’s optimism is supported by Match Group’s financial strategies, including the announced $1 billion repurchase authorization and the intention to use over half of its free cash flow on buybacks. He also notes the potential upside from Apple’s policy changes in the EU and the company’s plans to invest in AI initiatives and other products like Hinge. While there is a decrease in confidence for a second-half subscriber rebound, the expected increase in average revenue per payer (RPP) helps maintain the revenue growth outlook. The valuation is based on a conservative growth and EBITDA margin estimate, reflecting the current challenges yet still justifying the Buy rating.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $50.00 price target.
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Match Group (MTCH) Company Description:
Texas-based Match Group is an online dating service company and provides dating products worldwide. The company has a vast portfolio of online dating services including Tinder, Match.com, OkCupid, PlentyOfFish, Meetic, among other brands.
Read More on MTCH:
- Match Group Reports Fourth Quarter 2023 Results
- Match Group: Board authorizes new $1B share repurchase program
- Match Group to roll out many AI-driven features in apps over course of 2024
- Match Group sees Q1 revenue $850M-$860M, consensus $871.96M
- Match Group sees FY24 revenue $3.57B-$3.67B, consensus $3.62B
