Bumble downgraded to In Line from Outperform at Evercore ISI

Evercore ISI downgraded Bumble to In Line from Outperform with a price target of $8, down from $18. The company’s Q2 results came in modestly below expectations but management meaningfully lowered the second half of 2024 guidance, driven by a strategy reset that aims to focus on improving the demographic balance and intent of users in its ecosystem, potentially at the expense of near-term monetization disruption, the analyst tells investors in a research note. The firm says Bumble’s lowered guide implies revenue growth will turn negative for both Q3 and Q4, with Bumble payers net adds also flipping to negative by Q4.