New Street downgrades Match on lack of Tinder improvement

New Street downgraded Match Group (MTCH) to Neutral from Buy with a price target of $34, down from $48, following last week’s investor day. The firm cites the lack of visibility into how Tinder monetization improvement is expected to unfold for the downgrade. While the shares should be supported by both a new 2% dividend yield and consistent share buybacks, there is still no sign of consistent monthly active user improvement at Tinder, the analyst tells investors in a research note. New Street says the lack of detail on how management aims to reverse weakening revenue trends leads to low conviction that new the Tinder guidance is conservative enough, let alone if upside can be achieved.