Citi lowered the firm’s price target on Bumble to $12 from $14 and keeps a Buy rating on the shares. The analyst also added a “30-day negative catalyst watch” on the shares. Continued softer app trends and a product roadmap that looks to require more patience leaves Citi cautious on the company’s second half of 2024 growth acceleration embedded into the fiscal 2024 guidance, the analyst tells investors in a research note. The firm says app data from SensorTower remained soft for Bumble, and while monthly active user growth was more stable at Tinder, “neither trend seems indicative that trends are set to meaningfully improve.” This creates a challenging setup for the fiscal year guidance, given the embedded second half acceleration, contends Citi.
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