John Blackledge, an analyst from TD Cowen, maintained the Buy rating on Grindr. The associated price target remains the same with $26.00.
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John Blackledge’s rating is based on Grindr’s impressive revenue growth and strategic advancements. The company reported a 27% year-over-year increase in revenue for the second quarter, which aligns with expectations, despite lower direct revenue growth being counterbalanced by strong advertising revenue. Grindr’s monthly active users increased by 6% year-over-year, indicating healthy engagement, particularly among younger demographics.
Additionally, Grindr’s management has reaffirmed their revenue and EBITDA guidance for 2025, supported by new product initiatives and advertising revenue growth. The company’s focus on product development, including enhancements in AI-powered features and monetization strategies, positions it well for future growth. These factors, combined with the potential for improved advertising monetization, underpin Blackledge’s Buy rating for Grindr’s stock.
Blackledge covers the Communication Services sector, focusing on stocks such as Netflix, Alphabet Class C, and Pinterest. According to TipRanks, Blackledge has an average return of 13.5% and a 60.08% success rate on recommended stocks.