Match Group: Strategic Initiatives Amid Mixed User Trends and Market Challenges Justify Hold Rating

Bank of America Securities analyst Curtis Nagle maintained a Hold rating on Match Group (MTCH – Research Report) today and set a price target of $32.00.

Curtis Nagle’s rating is based on a combination of factors that reflect both potential opportunities and existing challenges for Match Group. The company’s CEO, Spencer Rascoff, has laid out a strategic plan to enhance growth by prioritizing urgency and reinvesting savings from a significant reduction in workforce. This includes a focus on improving the product roadmap for Tinder and operating Match Group brands more cohesively through shared resources.
Despite these positive initiatives, there are concerns that contribute to the Hold rating. The daily active user trends for Tinder have shown some deceleration, although Hinge has experienced an acceleration in user growth. Additionally, while efforts to streamline operations and leverage AI for product improvements are underway, the broader dating category trends remain weak, warranting a cautious outlook. Therefore, while there are promising strategies in place, the mixed user trends and market conditions justify a neutral stance on the stock.

In another report released today, Evercore ISI also maintained a Hold rating on the stock with a $32.00 price target.