Bumble (BMBL – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Nathan Feather from Morgan Stanley maintained a Hold rating on the stock and has a $6.00 price target.
Nathan Feather has given his Hold rating due to a combination of factors surrounding Bumble’s financial outlook. The company’s revenue from its Bumble brand is slowing down, prompting a reduction in revenue estimates by 2% to 4% for 2025 and 2026. Additionally, the decision to phase out certain products like Fruitz and Official is expected to further impact revenue, leading to an overall decrease of 3% to 5% in revenue projections for the same period.
Feather also notes a slight contraction in gross margins and a significant reduction in EBITDA margins due to the lower revenue base. The long-term EBITDA margin forecast has been adjusted downward, reflecting limited potential for revenue growth. Consequently, the price target has been lowered from $8 to $6, reflecting a cautious outlook on the stock’s future performance amidst high uncertainty in user trends. This cautious stance is why the stock is rated as Hold, as the market awaits more clarity on the brand’s resilience.
In another report released on March 6, UBS also maintained a Hold rating on the stock with a $5.00 price target.