In a report released today, John Blackledge from TD Cowen maintained a Buy rating on Match Group, with a price target of $38.00.
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John Blackledge has given his Buy rating due to a combination of factors including Match Group’s attractive valuation and a solid outlook for its Hinge platform. Despite an expected slight decline in overall revenue, the strong growth trajectory of Hinge, with a 26% year-over-year increase, and the stabilization of Tinder’s revenue declines contribute positively to the company’s prospects. The stock’s current trading metrics, such as a 13x price-to-earnings ratio and an 11% free cash flow yield based on 2026 estimates, suggest it is undervalued.
Furthermore, the company’s strategic initiatives, including a significant workforce reduction aimed at achieving $100 million in annual savings, are expected to bolster its financial position. These savings are planned to be reinvested into expanding Hinge’s presence in international markets like Brazil, Mexico, and Asia, as well as expanding Azar into the US and Latin America. Management’s commitment to maintaining their 2025 guidance despite potential macroeconomic uncertainties further supports the Buy rating.