Match Group Analyst Projects Nearly 400K Net New Q2 Tinder Adds

Investors should continue to swipe right on Match Group Inc MTCH, the parent company of the Tinder dating app, even though the stock has become pricey, according to Jefferies Equity Research.

The Analyst

Brent Thill maintained a Buy rating on Match Group with an $80 price target. The stock is a Jefferies top pick. 

The Thesis

Match Group has significantly outperformed the Nasdaq, but Thill swiped aside valuation concerns, noting that the company is still trading at a 12% discount to its subscription internet peer group. (See Thill's track record here.) 

The company has several dating apps, including OKCupid, Plenty of Fish and BlackPeopleMeet, but Tinder is its signature product, he said. And it’s doing well.

“We see no red flags in 2Q Tinder data, with an average U.S. App Store ranking of 1.9 vs 2.4 in 1Q19 and 3.6 in 2Q18,” Thill said.

The analyst said there's room for more monetization with Jefferies modeling nearly 400,000 net new Tinder adds in the second quarter, up from 384,000 adds in the first quarter.

Price Action

Match Group shares were down 3.04% at $69.31 at the time of publication Tuesday. 

Related Links:

Tinder Transformed Online Dating, But High Expectations Are Priced In, Says Wells Fargo

Dating Is Good Business On Wall Street — Now Users Can Also Turn A Profit

Photo courtesy of Tinder.