Bumble downgraded to Hold from Buy at Stifel

Stifel downgraded Bumble to Hold from Buy with a price target of $6.50, down from $13. The company reported mixed Q2 results and its guidance “missed the mark by a wide margin” as a result of forthcoming and significant changes to the Bumble App, the analyst tells investors in a research note. The firm says that given the commentary on the earnings call, the suggested changes, “although a bit vague and widespread, sound unavoidable.” While the proposed changes are likely to set the company up for a better chance at success, the category-wide intense focus on providing a better experience for women will remain an overhang for investors as most are likely to view Bumble’s differentiation across competing apps as dissipating, contends Stifel. As such, it expects the shares to “remain depressed” in the near-term.