2023-03-17 07:22:13 ET
- Citi has initiated coverage on online dating platform Bumble with a "Buy" recommendation and a $24 price target.
- The bullish recommendation is based on the company’s namesake app that has continued to gain market share in the online dating space.
- Analysts Ygal Arounian and Maxwell Moore explained: "While the Bumble app is still well behind the industry leader Tinder, its market share gains and recent product launches have transalated to better conversion of paid users."
- The app's women first brand messaging has also resonated well with younger audiences and is a "proven differentiator," the analysts added.
- However, Bumble's second largest app, Badoo, is facing challenges mainly due to its exposure to Russia’s invasion of Ukraine. While it will be difficult, Arounian and Moore expect improvement over time.
- SA Quant system rates the stock as "Hold." Shares have dropped 33% over the past year
For further details see:
Citi initiates Bumble with Buy citing market gains