According to KeyBanc Capital Markets, it’s about time investors showed some more love to Bumble stock. Analyst Justin Patterson upgraded shares of the mobile dating company to overweight from a sector weight rating, citing increasing belief in Bumble’s ability to capitalize on online dating trends. Shares were up about 3% before the bell. “Coupled with product initiatives…international ramps and moderate headwinds in FX markets, we are increasingly confident that the core Bumble app can sustain over 20% annual revenue growth,” he said in a note Monday. Patterson set a price target of $27 for the stock, up nearly 35% from Monday’s close. The stock lost 38% in 2022. He also sees Bumble’s valuation as attractive compared to peers like Match. It trades at 12.4 times 2024 enterprise value for EBITDA, with opportunities for margin growth in the high teens up to 20%. As demand for online dating continues, Patterson expects the company to benefit from continued expansion into international markets, mitigating foreign exchange headwinds and growing its offering of compliments. “We believe Bumble is capitalizing on a secular trend toward global online dating and the search for more meaningful relationships,” Patterson said. “With a strong focus on product, brand, and trust and security, we believe Bumble has created a company capable of attracting a significant user base across geographies.” – CNBC’s Michael Bloom contributed to the coverage
https://www.cnbc.com/2023/01/10/keybanc-upgrades-bumble-says-shares-can-rally-more-than-30percent-as-consumers-continue-turning-to-online-dating.html KeyBanc Upgrades Bumble, Says Shares Can Soar More Than 30% If Consumers Continue to Turn to Online Dating
