Jefferies analyst James Heaney CFA has maintained their bullish stance on MTCH stock, giving a Buy rating on February 1.
James Heaney CFA has given his Buy rating due to a combination of factors that suggest a positive outlook for Match Group (MTCH). Management’s confidence in the growth of Tinder’s paying users, particularly in the upcoming quarters, is a key reason. Heaney notes that despite a competitive landscape, Tinder’s history of successfully increasing its number of paying users through ongoing optimizations and feature enhancements is expected to continue. Additionally, although there is a general concern regarding social media platforms usurping traditional dating apps, Match Group’s research indicates that dating apps like Tinder continue to gain market share in terms of first dates, highlighting their distinct purpose and user intentionality.
Furthermore, Match Group’s financial projections remain robust, with the company anticipating it will maintain a greater than 36% Adjusted Operating Income (AOI) margin in 2024, even as it plans to increase investments in areas such as marketing, AI, and product innovation. This balance of strategic investments with financial discipline underpins the confidence in sustained profitability. Moreover, Hinge’s promising start to the quarter after a seasonally slow Q4 supports the positive sentiment, with management expecting significant revenue growth. Match Group’s strategy of prioritizing organic investments and share repurchases over mergers and acquisitions (M&A) also indicates a focus on strengthening its core business, which is seen as favorable for long-term value creation.
In another report released on February 1, Barclays also maintained a Buy rating on the stock with a $55.00 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 price target raised to $38 from $35 at Truist
- Match Group price target raised to $42 from $40 at Deutsche Bank
- Match Group price target raised to $39 from $33 at Stifel
- Match Group price target lowered to $46 from $48 at TD Cowen
- Match Group price target raised to $46 from $39 at Susquehanna
