Evercore ISI Sees Huge Upside In Bumble Post Pullback, Upgrades To Outperform

Evercore ISI analyst Shweta Khajuria upgraded Bumble Inc BMBL to Outperform from In-Line with a price target of $50, down from $55, implying a 48% upside.

• The 27% pullback in shares since the company's Q3 EPS report on November 10 has created an attractive entry point, said Khajuria.
• The analyst sees upside to consensus Q4 Bumble app net adds estimates and the Street's FY22 estimates. 
• Muted Q3 net adds are not the beginning of a market share loss trend, argues Khajuria.
• Khajuria thinks the company's fundamentals and long-term opportunities remain essentially unchanged.
• Recently, Bumble reported Q3 FY21 revenue of $200.5 million, up 24% year-on-year, above the consensus of $198.8 million. EPS loss of $(0.06) compares to the loss of $(0.01) in Q3 FY20.
• Bumble sees Q4 revenue of $208 million - $211 million, above the consensus of $206 million.
• Bumble sees FY21 revenue of $765 million - $768 million above the consensus of $761.6 million.
• Price Action: BMBL shares traded lower by 1.63% at $33.74 on the last check Tuesday.