Match Group (NASDAQ:MTCH) Inc’s stock price could get a lift in 2024 by important catalysts including an activist investor and a new Tinder CEO, Jefferies analysts asserted.
In an update to clients, the analysts raised their price target on Match Group (NASDAQ:MTCH) stock to $47 per share while maintaining a ‘Buy’ rating, implying 20% upside from current levels, believing the stock will be rewarded more for accelerating user/revenue growth than cost-cutting.
"In our view, the activist investor should focus Tinder's new CEO on accelerating user growth, which has slowed significantly over the last two years," the analysts wrote.
They acknowledged, however, that while Match Group has taken several steps to reaccelerate Tinder's revenue growth, they did little to fix Tinder's declining user and payer base and believe improving Tinder's product will be key for the stock.
Analysts at Jefferies noted that Tinder should improve the experience for women, continue to add more options to user profiles (e.g. voice prompts), and consistently lean into marketing to sustain more consistent user growth.
Shares of Match Group edged 0.2% higher to $39.13 in early Wednesday trading.