This dating stock has one of the best growth rates in Citi’s internet sphere
Ygal Arounian cited several tailwinds for the dating stock in his note.
Bumble stock is currently down about 30% versus its YTD high.
Follow Invezz on Telegram, Twitter, and Google News for instant updates >
A sharp decline in shares of Bumble Inc (NASDAQ: BMBL) over the past six weeks is an opportunity to buy a quality name at a deep discount, says Ygal Arounian – Equity Research Analyst at Citi.
Bumble stock should be worth $24 a share
Arounian assumed coverage of the dating platform this morning with a “buy” rating. His $24 price target suggests a near 25% upside on the price at which Bumble stock closed last night.
In a research note today, the Citi analyst said the Austin-headquartered company had one of the best growth rates in all the internet stocks his firm covers.
Most importantly to us is that the core Bumble app has seen continued share gain within the online dating world, and recent product launches are leading to better conversion of paid users as well.
In its latest reported quarter, Bumble Inc increased its total paying users by a better-than-expected 14.4% to 3.4 million.
Other tailwinds that could boost Bumble stock
Arounian expects the stock to benefit as Bumble continues to expand internationally.
Other reasons cited for the constructive view on the Nasdaq-listed firm include its “women first” narrative and a focus on younger audience. The research note also reads:
We think there are attractive long-term tailwinds to this space [and] Bumble has the right pieces in place to see improvements while it builds on that future.
Arounian expects the company’s revenue to reaccelerate this year and, therefore, is convinced that the Bumble stock does indeed warrant a slight premium versus its industry peer Match Group Inc.
Stocks & Shares