J.P. Morgan analyst Cory Carpenter has maintained their neutral stance on BMBL stock, giving a Hold rating today.
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Cory Carpenter has given his Hold rating due to a combination of factors that suggest Bumble’s turnaround is still in its early stages. Despite reporting fourth-quarter results that were near the high end of their guidance, the company is experiencing challenging trends, with a year-over-year decline in revenue and a negative net add count for the first time since late 2020.
Bumble’s first-quarter guidance indicates further declines, with revenue expected to be down 7% to 4% and net adds projected to decrease. The company is focusing on improving user engagement before shifting its attention to conversion and revenue, which suggests that a full recovery may take some time. Consequently, estimates for 2025 revenue and adjusted EBITDA have been lowered, and a return to growth is now anticipated by 2027. Until Bumble can achieve sustained revenue growth, its stock is expected to trade at a discount compared to its peers.
Carpenter covers the Communication Services sector, focusing on stocks such as Match Group, Electronic Arts, and Roblox. According to TipRanks, Carpenter has an average return of -7.5% and a 35.37% success rate on recommended stocks.
In another report released today, Citi also maintained a Hold rating on the stock with a $6.80 price target.