Bumble's App Share Gain, Recent Product Launches Win Analyst Attention

  • Citigroup analyst Ygal Arounian initiates coverage on Bumble Inc BMBL with a Buy rating and a price target of $24.
  • Bumble currently has one of the best growth rates within Citi's Internet coverage, with expected modest EBITDA margin expansion. 
  • Most importantly, the core Bumble app has gained continued share in online dating. Recent product launches are also leading to better conversion of paid users (which has also seen steady improvements over time). 
  • Its brand message around "women first" seems to resonate well with younger audiences, and Bumble is pushing further there with a greater focus on the college audience. 
  • It is also earlier in its international runway with material room for growth. 
  • Bumble's second largest app, Badoo, is seeing more significant challenges, with more exposure to the war in Russia and a more pressured lower-income demographic. 
  • Although it will be a challenge, the analyst expects improvement over time.
  • Price Action: BMBL shares traded higher by 3.82% at $20.11 on the last check Friday.
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