Bumble Drops After Getting Mixed Ratings From Wall Street

Dating app Bumble got positive views from some Wall Street analysts for revenue growth, but others flagged valuation concerns.
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Dating app Bumble  (BMBL) - Get Report, which made its stock market debut last month, received mixed ratings from analysts as they initiated coverage on the stock.

Analysts at Jefferies, Stifel and Cowen were optimistic about Bumble with two buys and one outperform rating, respectively.

Jefferies analyst Brent Thill said he views Bumble as a “premier” women's brand that will gain a share of women's global spending power and the customary usage of global online singles. 

Thill, who gave a buy rating to the stock, expects Bumble to clock over 20% annual revenue growth over the next five years at 25%+ Ebitda margins. Jefferies has an $80 price target on the stock.

Stifel analyst John Egbert said that “Bumble’s mission-driven approach prioritizing safety, accountability, and control is tailor-made for today’s dating world and helps it stand out relative to its peers." 

Stifel also gave Bumble a buy rating with a price target of $75.

Cowen analyst John Blackledge gave Bumble an outperform rating as he expects Bumble to benefit from strong offline-to-online dating trends. 

"Its potential to expand into new geographies is a key growth vector," Blackledge said in a note. Cowen has a $70 price target on Bumble.

Meanwhile, analysts at JPMorgan, Morgan Stanley and BMO Capital Markets were cautiously optimistic about Bumble's prospects.

"The female-first approach offers differentiation in the dating app sector and could help to build a bigger brand, with non-dating segments boosting free option value," wrote BMO Capital Markets analyst Daniel Salmon. Salmon rated Bumble as market perform with a price target of $65.

Morgan Stanley analyst Lauren Schenk rated the dating company as equal weight due to valuation concerns. 

Schenk said the company is a “formidable” number two in the online dating sector, and is in the early stages of international expansion. Morgan Stanley has a $56 price target on the stock.

Analysts at JPMorgan said Bumble is trading at a “slight” premium to competitor Match Group  (MTCH) - Get Report. JPMorgan has a neutral rating on the stock with a price target of $60.

Shares of Bumble were off 1.6% to $60.64 at last check during trading on Monday morning.