Bumble (BMBL) Stock: $39 Target And Hold Rating

By Amit Chowdhry ● Aug 4, 2022
  • The shares of Bumble (BMBL) recently received a $39 price target from Jefferies. These are the details.

The shares of Bumble (BMBL) recently received a $39 price target from Jefferies. And Jefferies analyst Brent Thill adjusted the rating on Bumble from a “Buy” rating to a “Hold” rating.

Thill adjusted the rating while noting that his third-party data checks show an acceleration in second-quarter revenue and downloads for the Bumble App. And Thill still sees several reasons to be cautious at current levels.

The Bumble App will be fully lapping the global implementation of two-tier pricing in the third quarter – which drove up a massive uptick in the third quarter of 2021 average revenue per user. So Thill expects decelerating ARPPU growth going forward and models just 1% growth in fiscal 2022. 

Plus Thill is skeptical that Bumble will experience Match Group level EBITDA margins any time soon. Based on these issues, Thill no longer views the company’s valuation as compelling as it was before.