Concerns Over Tinder's Prospects Despite Match's Multiple Catalysts Keeps Analyst At Sidelines

Citigroup analyst Ygal Arounian initiated coverage on Match Group Inc MTCH with a Neutral rating and a price target of $55.
Match Group does have multiple potential catalysts and valuation levels that are as attractive as they have been since 2019.
Still, the analyst initiated coverage on the sidelines as Match currently has multiple new initiatives too early for him to understand.
Hinge is the shining star at Match Group, with expansion and monetization growth still in earlier days.
Tinder is undergoing a rebuild of sorts. The rebuild includes efforts to improve its branding and monetization as both have come under pressure with market share losses in time spent and users.
Also Read: Bumble's Solid Payer Trends, ARPU Growth And App Downloads Earns It Analyst Conviction As It Closes Gap With Tinder
The analyst believes it's unlikely MTCH shares work long-term without Tinder seeing improvements in trends.
The analyst looks to see incremental progress on Tinder's rebuild and signs of improvements in payer conversions and propensity to spend.
In November 2022, Match Group reported that its third-quarter revenue increased 1% year-over-year to $810 million, which beat average analyst estimates of $795.43 million. The company reported quarterly earnings of 44 cents per share, which beat average forecasts of 41 cents per share.
During Match's Q3 results, it shared plans to focus on Tinder growth as it heads into 2023 and on targeted, high-return investments, especially in Hinge and The League and some newly-incubated apps.
This January, Tinder lost its chief product officer Josh Sell who joined N3twork Studios as the chief operating officer to pursue web3 gaming ambitions.
Price Action: MTCH shares traded higher by 1.35% at $51.22 on the last check Thursday.

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