Hold Rating on Match Group Amid User Trends Concerns and Macroeconomic Challenges

Bank of America Securities analyst Curtis Nagle has reiterated their neutral stance on MTCH stock, giving a Hold rating yesterday.

Curtis Nagle has given his Hold rating due to a combination of factors impacting Match Group’s performance and outlook. The company’s recent financial results showed a modest beat in revenue and EBITDA, but there are concerns about declining user trends at Tinder, which is a key platform for Match Group. Despite a slight improvement in revenue per payer due to favorable foreign exchange rates, the overall revenue growth is tempered by macroeconomic challenges and a cautious outlook on Tinder’s a la carte revenue.
Management’s decision to cut the workforce by 13% and reinvest the savings into growth and product initiatives is a positive step, but the lack of clarity on when Tinder’s user trends will improve adds uncertainty. Additionally, while there are potential cost savings from a legal ruling, the outcome is still pending. The company’s commitment to shareholder returns through dividends and buybacks remains strong, yet the lack of earnings momentum and the need for further operational improvements contribute to the Hold rating.

In another report released yesterday, J.P. Morgan also maintained a Hold rating on the stock with a $28.00 price target.