Goldman Sachs analyst Eric Sheridan has maintained their bullish stance on BMBL stock, giving a Buy rating yesterday.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Eric Sheridan has given his Buy rating due to a combination of factors that suggest potential growth and value in Bumble’s stock. The company is undergoing a reorganization with a new CFO, aiming to streamline its product roadmap and enhance operational efficiency, which management believes will lead to a return to growth. Additionally, Bumble is focusing on user categories, particularly the ‘improve’ group, and plans to release new products for its Bumble App and BFF app, indicating a commitment to expanding its user base and offerings.
Despite some uncertainty regarding user growth trends due to trust and safety initiatives, Sheridan sees potential in Bumble’s ability to improve membership quality and achieve a mix of revenue growth and margin expansion. At the current share price, he believes the market is not fully accounting for Bumble’s potential for compounded revenue growth and margin improvements. Therefore, he maintains a Buy rating with a 12-month price target of $8, reflecting confidence in the company’s valuation and growth prospects.
According to TipRanks, Sheridan is a 5-star analyst with an average return of 8.2% and a 52.93% success rate. Sheridan covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Netflix, and Match Group.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a $7.50 price target.