Bumble Drops; Analysts Cautious on Outlook, Note Valuation

Bumble topped estimates and raised guidance, but the analysts are concerned about valuation and the outlook for the online-dating market.
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Shares of Bumble (BMBL) - Get Report fell on Thursday, taking the stock of the dating app below its February initial public offering price. 

Bumble at last check dropped more than 12% to $41.45, even after the Austin company topped analysts' first-quarter expectations and provided upbeat guidance.

"Our outlook is a realistic reflection of the product features we expect to launch and the market expansions we have planned for this year," Chief Financial Officer Anu Subramanian said in a statement.

Analysts at Stifel maintained their buy rating while lowering their price target on Bumble to $66 a share from $78. 

The firm was cautious about the modest raise to its guidance "due to caution around the pace of reopening and global economic recovery given some recent setbacks in a number of countries."

Morgan Stanley maintained its equal weight rating and $57 price target as the company's outlook "raised questions," according to Bloomberg. "Online dating remains a compelling reopening winner," but the firm is concerned about Bumble's valuation.

Citi affirmed a buy rating and $75 price target. The outlook for the company is favorable, but "in this market it may not be enough to get the stock moving higher," the firm said.

BMO Capital maintained its market-perform rating while cutting its price target to $55 from $65. 

The company reported first-quarter earnings of $1.69 a share on revenue of $170.7 million. Analysts were expecting a net loss of 3 cents a share on revenue of $164.6 million. 

Bumble debuted in February, selling 50 million shares at $43, raising $2.15 billion. The stock was down more than 40% since the IPO.