Match Group initiated with a Neutral at UBS

UBS analyst Kunal Madhukar initiated coverage of Match Group with a Neutral rating and $46 price target. The analyst does not believe that Match can deliver sustained mid-to-high teens consolidated revenue growth given that Tinder – 57% of total revenue – seems "mature" and other apps are growing slower in aggregate. Madhukar is modeling FY23 and FY24 revenue growth rates of 7% and 13% vs. consensus of 8% and14%. The analyst adds that while Tinder has had standout margins thus far because it didn’t really need to spend on marketing, it will have to do so now.