Bumble ( NASDAQ: BMBL ) is 1.1% higher as BofA starts coverage of the online-dating name at Buy.
That's due to a "strong operational record, healthy fundamentals, and what we feel is a relatively safer space within our coverage to invest in should aggregate consumer spending decrease," said analyst Nathaniel Schindler.
Bumble's namesake app (vs. its other online dating apps, Badoo and Fruitz) is among the world's top apps, with high ratings and net promoters scores, with "further room for expansion and payer growth," Schindler noted.
"We think the company presents a strong medium-term investment case given healthy margins along with opportunities to enter and develop markets," he said.
While Match Group ( NASDAQ: MTCH ) is still the industry leader, "we think Bumble has substantial room to grow and leverage its position as a strong number two by incubating other markets. BMBL has grown its US & Canada market share by +19ppts since 2017 with potential to replicate its success internationally through best-in-class marketing and product innovation," Schindler wrote.
He has a price objective of $29, now implying 23% upside.
For further details see:
Bumble rises as BofA starts at Buy, highlighting room for more payers