Raymond James Sees Bumble's 30% Pullback Since Q3 Results As Attractive Entry Point

Raymond James analyst Andrew Marok upgraded Bumble Inc BMBL to Outperform from Market Perform with a $48 price target, implying a 41.9% upside. 

• The 30% pullback in the shares since the company's Q3 results provides an attractive entry point, Marok tells investors in a research note. 
• Bumble reported Q3 FY21 revenue of $200.5 million, up 24% year-on-year, above the consensus of $198.8 million. EPS loss of $(0.06) compares to the loss of $(0.01) in Q3 FY20.
• Despite the softness in paying users, Bumble's top-line results were "solid," with a Q4 guide above Street estimates, indicating substantial average revenue per user performance, says the analyst. 
• Bumble sees Q4 revenue of $208 million – $211 million, above the consensus of $206 million.
• Bumble sees FY21 revenue of $765 million – $768 million, above the consensus of $761.6 million.
• Marok sees the share selloff as overdone and believes Bumble remains well positioned in the "attractive" online dating market.
• Related Content: Evercore ISI Sees Huge Upside In Bumble Post Pullback, Upgrades To Outperform
• Price Action: BMBL shares closed lower by 1.6% at $33.83 on Friday.