Analyst John Blackledge of TD Cowen maintained a Buy rating on Grindr, retaining the price target of $26.00.
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John Blackledge has given his Buy rating due to a combination of factors that highlight Grindr’s growth potential. The company is poised for expansion in its monthly active users (MAU), particularly among older age groups in the US and Western Europe, and in regions like Latin America and Asia where brand awareness and user bases are still developing. This demographic trend, especially among younger users, positions Grindr favorably compared to other dating platforms facing challenges with Gen Z.
Additionally, Grindr’s management is focused on increasing advertising revenue, which is expected to grow significantly due to new ad formats and partnerships. The optimization of ad loads and the potential for direct brand advertising partnerships further bolster this revenue stream. Moreover, the company’s strategic paywall optimization efforts, which enhance subscription value, are contributing to its growth, making Grindr an attractive investment opportunity.
In another report released on August 11, Citizens JMP also maintained a Buy rating on the stock with a $23.00 price target.
Based on the recent corporate insider activity of 120 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GRND in relation to earlier this year.