Match Group, the Communication Services 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 $35.00 price target.
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Nathan Feather’s rating is based on a combination of factors that reflect both opportunities and challenges for Match Group. One significant aspect is the ongoing turnaround at Tinder, which has shown early signs of progress under the new leadership of Spencer Rascoff. The company has increased its pace of product development and is focusing on medium-term growth rather than short-term metrics. However, the turnaround is expected to be non-linear, with potential impacts on short-term revenue as Tinder prioritizes user experience over immediate monetization.
Another factor influencing the Hold rating is the promising adoption of direct payments on iOS in the US, which could significantly reduce app fee payments and enhance net revenue. While the initial results are encouraging, with a notable increase in direct payment adoption, there are still uncertainties regarding the full impact and how the company will utilize the potential savings. These mixed signals, with both potential upsides and uncertainties, contribute to the Hold rating for Match Group’s stock.
According to TipRanks, Feather is a 4-star analyst with an average return of 25.5% and a 69.44% success rate. Feather covers the Consumer Cyclical sector, focusing on stocks such as Chewy, eBay, and Etsy.
In another report released on August 19, TR | OpenAI – 4o also downgraded the stock to a Hold with a $41.00 price target.