Citi analyst Ygal Arounian maintained a Hold rating on Bumble (BMBL – Research Report) yesterday and set a price target of $4.80.
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Ygal Arounian has given his Hold rating due to a combination of factors related to Bumble’s recent financial performance and future outlook. The company’s first-quarter results for 2025 were largely in line with expectations, with revenue figures slightly surpassing the guidance midpoint and adjusted EBITDA exceeding forecasts. However, the improvement in profitability was attributed to a temporary reduction in marketing expenses, which raises questions about the sustainability of these margins.
Looking ahead, Bumble’s guidance for the second quarter of 2025 suggests revenue figures that align with estimates but fall short of broader market expectations. The company’s strategy under the leadership of Whitney Wolfe Herd, who has returned as CEO, will be crucial in determining future growth, especially in light of the anticipated pullback in marketing spend. While the core Bumble app showed resilience, the overall growth outlook remains cautious, prompting the Hold rating as investors await clearer signs of a turnaround and sustained growth.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $5.50 price target.