Analyst Chris Kuntarich of UBS maintained a Hold rating on Match Group, retaining the price target of $36.00.
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Chris Kuntarich has given his Hold rating due to a combination of factors impacting Match Group’s financial outlook. The company is experiencing mixed revenue growth prospects, with some headwinds in product and trust/safety revenues. However, these are partially offset by increased gross margin leverage from the adoption of web-based payments, which is expected to yield significant cost savings in the coming fiscal year.
Despite the company’s efforts to enhance its products and optimize platforms like Tinder and Hinge, the current valuation of Match Group’s shares appears fair. The stock is trading at a multiple that reflects its projected growth, and there is limited confidence in the conservative estimates for revenue headwinds. Additionally, regulatory challenges in regions like Asia are contributing to uncertainties, further supporting the Hold recommendation.
Kuntarich covers the Technology sector, focusing on stocks such as GoDaddy, Unity Software, and Duolingo. According to TipRanks, Kuntarich has an average return of 25.9% and a 57.41% success rate on recommended stocks.