Goldman Sachs raises Bumble stock price target to $9, keeps buy rating

Published 08/05/2025, 11:10
Goldman Sachs raises Bumble stock price target to $9, keeps buy rating

On Thursday, Goldman Sachs analyst Alexandra Steiger increased the price target for Bumble Inc. (NASDAQ:BMBL) shares to $9.00, up from the previous $8.00, while maintaining a Buy rating on the stock. Currently trading at $4.39, the stock has analyst targets ranging from $4.80 to $8.00, with InvestingPro data showing significant volatility in recent price movements. Following Bumble’s first-quarter earnings report for 2025, the analyst provided insights on the company’s future direction and market potential.

Bumble’s management outlined their vision for the company and the dating industry, highlighting the large addressable market despite ongoing debates about industry growth. With a healthy gross profit margin of 70% and current ratio of 2.47, the company maintains strong operational efficiency and liquid assets exceeding short-term obligations. The company’s success in tapping into this market is expected to hinge on its ability to attract higher quality users. Additionally, Bumble anticipates that enhancements to its core product offerings, particularly through the use of artificial intelligence and machine learning, will improve user experiences. These improvements are aimed at increasing user matches, fostering more quality interactions, and bolstering safety features.

Despite uncertainties regarding the timeframe of Bumble’s turnaround, Steiger noted that the stock’s underperformance over the past year presents investors with an attractive entry point to reevaluate the company and its market segment. According to InvestingPro, the stock appears undervalued based on its Fair Value analysis, with a strong free cash flow yield supporting this assessment. The analyst’s revised price target reflects adjustments to forward operating estimates based on the latest earnings report and management’s forward-looking statements. For deeper insights into Bumble’s valuation and 10+ additional ProTips, check out the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Bumble Inc. reported its first-quarter 2025 financial results, showing a mixed performance. The company exceeded revenue expectations with $247 million, surpassing the projected $246.65 million. However, earnings per share (EPS) slightly missed forecasts, coming in at $0.13 compared to the expected $0.14. Despite this minor miss, the revenue figures indicate a positive surprise for investors. Bumble is actively focusing on AI-driven innovations and international market expansion as part of its strategic initiatives. The company is also emphasizing cost-saving measures and organizational efficiency, having identified $15 million in operating cost savings to be realized by year-end. Looking ahead, Bumble anticipates a revenue range of $235 million to $243 million for the second quarter, reflecting a potential year-over-year decrease. The company is prioritizing quality user experiences and innovation, which aligns with its commitment to enhancing its matching algorithms and user engagement.

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