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Cautious Hold on Bumble Amid Revenue Challenges and Leadership Changes

Cautious Hold on Bumble Amid Revenue Challenges and Leadership Changes

John Blackledge, an analyst from TD Cowen, maintained the Hold rating on Bumble (BMBLResearch Report). The associated price target is $8.00.

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John Blackledge’s rating is based on a cautious outlook for Bumble as the company faces challenges in reversing its revenue decline. While the management has expressed optimism about achieving revenues above the midpoint of their guidance, the anticipated year-over-year decline in the fourth quarter signals underlying issues with payer growth in the Bumble App.
Additionally, the return of founder Whitney Wolfe Herd as CEO and the planned product launches in 2025 could potentially change the company’s trajectory, but uncertainties remain. The unchanged EBITDA outlook and the departure of key executives further contribute to the Hold rating, as these factors suggest a transition period with potential risks and opportunities. Consequently, the price target remains at $8, reflecting the need for more evidence of sustained improvement before considering a more bullish stance.

In another report released on January 27, Stifel Nicolaus also maintained a Hold rating on the stock with a $7.00 price target.

BMBL’s price has also changed moderately for the past six months – from $9.340 to $8.110, which is a -13.17% drop .

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