Skip to main content

Market Overview

Match Group Is a Global Online Dating Leader, But Shares Are Fairly Valued, JPMorgan Says In Downgrade

Match Group Is a Global Online Dating Leader, But Shares Are Fairly Valued, JPMorgan Says In Downgrade

After surging more than 175 percent over the past year, Match Group Inc (NASDAQ: MTCH)'s stock is now fairly valued with fewer catalysts ahead, according to JPMorgan. 

The Analyst

JPMorgan's Doug Anmuth downgraded Match Group from Overweight to Neutral with an unchanged $42 price target.

The Thesis

Match Group, the parent company of multiple dating platforms including Tinder, is expected to remain a global leader in the sector — but three factors are likely to limit continued upside in the stock, Anmuth said. They are:

  • Expectations for Tinder net adds to trend down and return to a more normalized level, while the platform has fewer product catalysts ahead.
  • Other dating apps remain stable but are likely to post a low-single-digit sub growth, short of management's expectations for a mid-to-high-single digit growth rate.
  • The stock's valuation is fairly valued at 32x 2019E GAAP P/E and 19x 2019E EV/EBITDA.

Investors may want to consider instead owning shares of IAC/InterActiveCorp (NASDAQ: IAC). The company is Match Group's largest shareholder and spun off a portion of Match Group in its 2015 initial public offering, the analyst said.

IAC's stock is "more compelling," as its valuation implies that the non-dating and ANGI Homeservices' assets are trading at a negative enterprise value, Anmuth said. 

Price Action

Shares of Match Group were trading lower by 0.36 percent Wednesday morning. 

Related Links:

New Names, Old Classics Among Short Sellers' Top Stocks

Oppenheimer Swipes Left: Match Group Downgraded On Rich Valuation

Photo courtesy of Tinder. 

Latest Ratings for MTCH

May 2021KeybancMaintainsOverweight
Apr 2021BTIGUpgradesNeutralBuy
Feb 2021WedbushMaintainsNeutral

View More Analyst Ratings for MTCH
View the Latest Analyst Ratings


Related Articles (MTCH)

View Comments and Join the Discussion!

Posted-In: dating Dating Apps Doug Anmuth JPMorganAnalyst Color Downgrades Price Target Analyst Ratings Best of Benzinga

Latest Ratings

PHXSeaport GlobalInitiates Coverage On
AFCGLake StreetInitiates Coverage On29.0
OSSNoble Capital MarketsUpgrades7.0
NCNOGabelli & Co.Upgrades
HAECJS SecuritiesUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at