Bank of America Securities analyst Curtis Nagle reiterated a Hold rating on Match Group today and set a price target of $38.00.
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Curtis Nagle has given his Hold rating due to a combination of factors influencing Match Group’s financial outlook. The company’s recent revenue figures slightly exceeded expectations, aided by favorable foreign exchange conditions, yet the EBITDA fell short due to unexpected legal charges. Despite a slight miss in Tinder’s payer numbers, direct revenue from both Tinder and Hinge surpassed estimates, suggesting potential for revenue growth, particularly with management’s planned reinvestments in product development and marketing.
However, there are concerns regarding the timing of a turnaround in Tinder’s payer trends, which remain uncertain as management anticipates continued declines similar to previous quarters. While Match Group has shown strength in shareholder returns through dividends and buybacks, the increased spending on sales and marketing is expected to impact EBITDA margins. These mixed signals, alongside the company’s strategic initiatives and market conditions, underpin Nagle’s decision to maintain a Hold rating on the stock.