Bumble price target raised to $7 from $6 at Evercore ISI

Investing.com - Evercore ISI raised its price target on Bumble Inc. (NASDAQ:BMBL) to $7.00 from $6.00 on Thursday, while maintaining an In Line rating on the dating app company’s stock. According to InvestingPro analysis, Bumble currently trades at 6.5x EV/EBITDA, with a Fair Value suggesting the stock is currently undervalued.

The price target increase follows Bumble’s announcement that its Board of Directors approved a 30% reduction in headcount aimed at optimizing execution. This workforce reduction is expected to generate approximately $40 million in annualized savings, though Bumble plans to reinvest a substantial majority of these savings into product and technology initiatives.

Bumble also revised its second-quarter outlook upward, now projecting revenue between $244-$249 million, compared to its previous guidance of $235-$243 million. The company similarly raised its EBITDA forecast to $88-$93 million from the prior range of $79-$84 million.

Evercore ISI based its new price target on a multiple of 6x the firm’s estimated 2026 EBITDA of $284 million for Bumble. Despite the improved financial outlook and cost-saving measures, the research firm maintained its neutral-equivalent In Line rating on the stock.

Bumble stock jumped 25% on Thursday following the announcement of the workforce reduction and improved financial guidance.

In other recent news, Bumble Inc. reported its first-quarter 2025 earnings, revealing revenue of $247 million, which exceeded the forecast of $246.65 million. However, the company posted earnings per share (EPS) of $0.13, slightly missing the expected $0.14. The company is focusing on artificial intelligence enhancements and international market expansion while implementing cost-saving measures and prioritizing organizational efficiency. UBS analyst Chris Kuntarich raised Bumble’s stock price target to $6.00 from $5.00, maintaining a Neutral rating, citing Bumble’s strategic shift towards enhancing membership quality and cost-cutting measures. Meanwhile, Goldman Sachs analyst Alexandra Steiger increased the stock price target to $9.00 from $8.00, keeping a Buy rating, and noted the potential for Bumble to tap into a large addressable market. Steiger highlighted Bumble’s plans to improve user experiences through artificial intelligence and machine learning. The company’s strategy includes a reduction in marketing expenditure by $20 million in the second quarter, aiming to attract higher-quality users. These developments reflect Bumble’s ongoing efforts to strengthen its market position and financial performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.