UBS starts Bumble at Neutral, sees international opportunity offset saturation

UBS analyst Kunal Madhukar initiated coverage of Bumble with a Neutral rating and $24 price target. The pivot from subscriptions to consumables points to Bumble App approaching saturation in core markets, but he believes that there is a significant opportunity for the company internationally, the analyst tells investors in a research note. Madhukar adds that he sees modest scope for margin expansion over the near term as Bumble focuses on international expansion primarily from scale benefits even as its revenue per payer may be lower.