Analyst John Blackledge from TD Cowen maintained a Buy rating on Grindr (GRND – Research Report) and keeping the price target at $20.00.
John Blackledge has given his Buy rating due to a combination of factors including Grindr’s impressive revenue growth and strong user engagement. The company reported a 35% year-over-year revenue increase in the fourth quarter, which exceeded expectations, primarily driven by advertising revenue and an increase in paying users. Despite a slight miss in EBITDA estimates, Grindr’s management has provided a positive revenue growth outlook for 2025, which is above consensus estimates.
Additionally, Grindr’s strategic focus on enhancing its advertising technology and product offerings is expected to drive further growth in average revenue per paying user (ARPPU) and payer conversion rates. The recent warrant redemption, resulting in a significant cash inflow, also strengthens the company’s financial position. These factors combined with management’s long-term revenue and EBITDA margin targets contribute to the Buy rating and a price target of $20.
In another report released yesterday, JMP Securities also maintained a Buy rating on the stock with a $21.00 price target.
Based on the recent corporate insider activity of 74 insiders, corporate insider sentiment is neutral on the stock.