In a report released today, Ygal Arounian from Citi maintained a Hold rating on Bumble (BMBL – Research Report), with a price target of $6.80.
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Ygal Arounian’s rating is based on several factors affecting Bumble’s current financial and strategic position. The company has been experiencing difficulties in achieving a successful turnaround, as evidenced by guidance below expectations for the first quarter and a lack of full-year projections for 2025. This uncertainty, coupled with ongoing margin compression, indicates that Bumble still needs significant work to stabilize its performance.
Moreover, while the returning CEO Whitney Wolfe Herd has reaffirmed her commitment to the company’s existing strategy, the lack of immediate catalysts and deteriorating trends make it challenging to foresee a short-term improvement. The valuation has become less risky with shares trading at around six times the estimated 2026 EBITDA, but the path to unlocking value appears to be a long-term endeavor, hence the Hold rating. The absence of a full income statement further complicates the visibility into Bumble’s future financial health and necessitates caution in the short term.
Arounian covers the Technology sector, focusing on stocks such as GoDaddy, Verisign, and Trade Desk. According to TipRanks, Arounian has an average return of 11.8% and a 51.94% success rate on recommended stocks.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $8.00 price target.