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Investing.com - TD Cowen has raised its price target on Bumble Inc. (NASDAQ:BMBL) to $7.00 from $6.00 while maintaining a Hold rating on the dating app company’s stock. According to InvestingPro data, Bumble’s stock is currently trading at $7.54, with analysis suggesting the stock is undervalued despite showing strong returns over the past three months.
The price target increase follows Bumble’s June 25 restructuring announcement, which the company expects to generate up to $40 million in annual savings.
TD Cowen notes that the "substantial majority" of these cost savings are expected to be reinvested back into the business, according to management guidance.
The firm has raised its estimates for Bumble’s second quarter, 2025, and long-term performance based on the updated outlook and anticipated cost savings from the restructuring.
TD Cowen indicates it will be looking for additional details on Bumble’s updated strategy as management focuses on core innovation and member health initiatives.
In other recent news, Bumble Inc. reported its first-quarter 2025 earnings, revealing a revenue of $247 million, which exceeded the projected $246.65 million. However, the company’s earnings per share (EPS) slightly missed forecasts, coming in at $0.13 compared to the expected $0.14. Several analysts have adjusted their price targets for Bumble following these developments. Goldman Sachs raised its target to $9, maintaining a Buy rating, while RBC Capital increased its target to $7, keeping an Outperform rating. Evercore ISI also lifted its target to $7, maintaining an In Line rating, and UBS adjusted its target to $6 with a Neutral rating. Bumble’s Board of Directors approved a 30% reduction in headcount to optimize execution, expected to save approximately $40 million annually. The company plans to reinvest a substantial portion of these savings into product and technology initiatives. Additionally, Bumble aims to reduce its marketing expenditure by $20 million in the second quarter compared to the first quarter.
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