The investment firm put a $78 price target on the Austin company.
Bumble "has firmly entrenched itself in the market, carving out a solid niche with its female-centric dating app," Susquehanna said, according to Bloomberg.
Because most users who pay for dating apps pay for multiple ones, Bumble "can continue improving monetization and attracting new paying users even if they also pay for" Match Group's (MTCH) - Get Report Tinder, the firm said.
Last month, Bumble priced its initial public offering at $43 a share, ahead of its estimated pricing of $37 to $39. Bumble raised $2.15 billion in its IPO.
The stock opened trading at $76 and touched a high of $84.80 on Feb. 12. Since then, through the close of trading on Wednesday, the stock was down about 27%.
At last check the shares were little changed at $62.04. They've traded on Thursday up as much as 3.8%. They've traded down as much as 2.2% at a life low of $60.63.
The New York private-equity firm Blackstone Group in 2019 took a majority stake in Bumble’s parent, MagicLab, a transaction that valued it at $3 billion.
The Bumble app was started in 2014 by Chief Executive Whitney Wolfe Herd, who also co-founded Tinder.
At 31, Wolfe Herd is the youngest woman to take a large company public in the U.S. as CEO, according to Bloomberg.
Bumble, which also owns the dating app Badoo, is set to report fourth-quarter and full-year 2020 results after the market closes on March 10.
TheStreet's Jim Cramer said the stock was a buy at its debut as it has built a business of providing a safe place for dating.