Grindr won its first Wall Street initiations. What analysts are saying

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Grindr won its first Wall Street initiations. What analysts are saying

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against competitors. GRND MTCH,BMBL 1D mountain Grindr vs. Match Group and Bumble, year to date Grindr has bucked the trend among dating app stocks this year. Shares have climbed 18% in 2024, while Match and Bumble have tumbled more than 7% and 28%, respectively, over the same time *******. Match and Bumble are more widely covered, with the majority of analysts polled by LSEG having buy ratings on each stocks. The average price targets imply Match jumping about 30% over the next year, while Bumble should bounce more than 47%. ‘First mover advantage’ Grindr leadership has said that the company is more akin to a social media platform than a dating app, given its high levels of engagement among users. In fact, the company has previously shared plans to expand use cases to things like travel in hopes of making Grindr a “gay super-app .” TD Cowen analyst John Blackledge, who was the first to initiate coverage, cited this expanding scope as a reason for excitement. Grindr not using swipe-based matches, and instead having a location-based grid, aids this goal, the analyst said. He rates the stock as a buy. “This functionality leads to various types of use cases, including casual and long-term relationships, Travel, and community,” said Blackledge, whose $12 price target implies a 15% upside. “Looking forward, the company should benefit from new features which are in development and tailored to each of these use cases.” The lack of swiping is something that others may want to follow as dating preferences shift, said Raymond James’ Marok. Specifically, noted the need for a “refresh” in Bumble’s user experience to appeal to younger consumers when downgrading the stock to market perform from outperform last week. “We believe that its brand is among the best-positioned in the space in terms of relevance with young people,” he said. But “we do see near-term headwinds stemming from changing user habits, which require significant rethinks among apps built in the millennial era.” Ultimately, Blackledge said Grindr is unique because it has the “first mover advantage” within the LGBTQ+ community. He expects annual revenue growth of around 13% between 2024 and 2029, with earnings before interest, taxes, depreciation, and amortization margins surpassing 40%. “Grindr has established itself as the leading LGBTQ+ social dating app through strong brand awareness, despite its relatively nascent tech. & product offerings,” Blackledge said.

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Match Group Inc,Bumble Inc,Social issues,******* States,Grindr Inc.,Stock markets,Investment strategy,business news
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