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Investing.com - Citizens lowered its price target on Grindr (NYSE:GRND) to $21.00 from $23.00 on Monday, while maintaining a Market Outperform rating following the company’s third-quarter results. According to InvestingPro data, analyst targets for Grindr currently range from $20 to $26, with the stock trading at $15.09, suggesting potential upside despite recent price volatility.
Grindr reported better-than-expected third-quarter 2025 results with revenue 2% above consensus and EBITDA exceeding expectations by 11%. The company generated $411.55 million in revenue over the last twelve months, representing strong growth of 28.97%. Monthly active users came in 2% below consensus, though Citizens noted that Grindr remains a category leader with management emphasizing the importance of its free tier and continued success in attracting younger users.
The price target reduction reflects Citizens’ adjusted EBITDA forecast as Grindr accelerates certain product investments. The new target is based on approximately 17 times the firm’s 2027 estimated EBITDA. InvestingPro shows Grindr’s current EV/EBITDA multiple at 24.49, with EBITDA reaching $125.16 million in the last twelve months. The company’s financial health score is rated as "GOOD" by InvestingPro’s comprehensive analysis.
Citizens believes Grindr has a long roadmap to pricing optimization, with the company seeing little change to conversion rates from its pricing tests. The firm also highlighted Grindr’s premium-priced AI product as a revenue opportunity in late 2026 and 2027.
Despite Grindr downplaying fourth-quarter 2025 gains in its advertising business, which drove the third-quarter beat, Citizens projects the company has a path to more than 20% growth in 2026 and 2027, supporting its continued Market Outperform rating. While Grindr isn’t currently profitable (with EPS of -$0.31), InvestingPro indicates analysts expect the company to turn profitable this year with an EPS forecast of $0.51. Discover more insights with InvestingPro’s exclusive Research Report, available for Grindr and 1,400+ top US stocks.
In other recent news, Grindr reported strong third-quarter 2025 earnings, surpassing both earnings per share (EPS) and revenue forecasts. The company’s EPS reached $0.16, exceeding the anticipated $0.12, while revenue came in at $116 million, surpassing the forecasted $113.33 million. These results indicate a robust performance, with the advertising business identified as a primary driver of revenue outperformance. Despite this positive financial performance, Goldman Sachs has adjusted its price target for Grindr from $22.00 to $20.00, although it maintained a Buy rating. The investment bank noted that there has been elevated investor concern over the past few months. Nonetheless, the stable user metrics and strong revenue figures seem to have bolstered investor confidence. These developments highlight the company’s resilience amidst market challenges.
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