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