Analyst Ygal Arounian from Citi maintained a Hold rating on Match Group (MTCH – Research Report) and keeping the price target at $32.00.
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Ygal Arounian has given his Hold rating due to a combination of factors surrounding Match Group’s recent performance and guidance. The company’s fourth-quarter results were in line with expectations, but the guidance for the first quarter of the following year and the full fiscal year fell short of consensus estimates. This is despite revenue guidance being maintained on a foreign exchange neutral basis, suggesting potential stronger performance in the latter half of the year.
Additionally, the anticipated revenue growth is heavily reliant on improvements in Tinder’s monthly active users and product innovation, which have been promised before but remain to be fully realized. While there were some positive indicators, such as solid new user trends in key markets, there are still concerns about the sustainability of these improvements. The introduction of a new CEO adds another layer of uncertainty, as it is yet to be seen how his vision and strategy will impact the company’s future performance.
In another report released yesterday, Wells Fargo also maintained a Hold rating on the stock with a $32.00 price target.