Morgan Stanley analyst Nathan Feather has maintained their neutral stance on MTCH stock, giving a Hold rating yesterday.
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Nathan Feather has given his Hold rating due to a combination of factors affecting Match Group. The appointment of Spencer Rascoff as the new CEO and Steven Bailey as the CFO comes at a critical time for the company, amidst efforts to address a notable decline in user growth, particularly at Tinder, which saw a 9% year-over-year decrease in monthly active users. The management changes are pivotal as Match Group navigates significant challenges within the online dating industry.
Additionally, while Tinder and Hinge have shown some positive user growth trends, the company’s guidance for first-quarter and full-year 2025 AOI margins fell short of expectations, raising concerns about achieving the projected margin expansion by fiscal year 2027. The new management team faces key questions regarding the sources of user decline, the role of AI in product development, and how to balance profitability with reinvestment. These uncertainties contribute to a cautious outlook, leading to the Hold rating recommendation.
In another report released yesterday, Citi also maintained a Hold rating on the stock with a $32.00 price target.