Goldman Sachs analyst Eric Sheridan maintained a Buy rating on Bumble (BMBL – Research Report) yesterday and set a price target of $10.00.
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Eric Sheridan’s rating is based on a combination of factors that suggest potential long-term growth for Bumble despite short-term challenges. Sheridan acknowledges that the company’s Q1’25 guidance fell short of expectations and that there are anticipated revenue headwinds and margin contractions in 2025. However, he sees the return of founder Whitney Wolfe Herd as a positive influence, likely to stabilize the company and reinvigorate app usage and engagement.
Moreover, Sheridan believes that current market valuations do not fully account for Bumble’s potential to achieve industry growth in the long run. While the company faces uncertainties in its operational trajectory for 2025, the current share price offers a favorable risk-reward balance. The solid Q4 operating performance, with revenue and user numbers slightly exceeding expectations, adds further support to his optimistic outlook, justifying the Buy rating.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a $7.00 price target.