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On Thursday, Raymond (NSE:RYMD) James analyst Andy Marok increased the price target on Grindr (NYSE: NYSE:GRND) stock from $21.00 to $22.00, while reiterating an Outperform rating. The new target sits within the broader analyst range of $20-$24, as tracked by InvestingPro. Marok’s decision follows Grindr’s fourth-quarter 2024 earnings report, which slightly surpassed the figures projected in the company’s positive preannouncement made in January.
Grindr’s guidance for 2025 aligns closely with market expectations. Marok notes that given Grindr’s history of consistently outperforming estimates, with revenue growing 31.79% in the last twelve months, the guidance should be considered a solid foundation for future growth. The analyst praised the company for its operational excellence and its ability to deliver on product promises, which he believes sets the stage for revenue enhancements.
The company’s Indirect business is also expected to contribute to its financial success. Marok highlighted the strategic significance of Grindr’s $500 million stock repurchase program, which represents approximately 15% of the company’s current $3.57 billion market capitalization, interpreting it as a positive gesture towards shareholder returns. According to InvestingPro, the stock has delivered an impressive 126.55% return over the past year, with additional insights available in the Pro Research Report.
Grindr concluded the year 2024 in a robust position, with strong operational performance supporting its financial structure. Trading near its 52-week high of $19.20, Raymond James sees no indication that the momentum Grindr has gained will dissipate in the near future, suggesting continued strength in the company’s operations and stock performance.
In other recent news, Grindr reported a strong financial performance for the fourth quarter of 2024, with a 35% increase in revenue year-over-year, reaching $98 million. This figure surpassed the forecast of $91 million, demonstrating the company’s effective growth strategies. For the full year, Grindr achieved a 33% increase in revenue, totaling $345 million. The company also maintained a robust adjusted EBITDA margin of 43% for the year. Despite the positive financial results, Grindr’s stock experienced a decline in after-hours trading.
Additionally, Grindr announced plans to launch a new product in the health and wellness space and initiate a share repurchase program worth up to $500 million. The company is also focusing on expanding its engineering team and investing in AI technology. Analysts from firms like Raymond James and TD Cowen inquired about the company’s future product development and revenue growth expectations during the earnings call. Grindr’s leadership expressed confidence in their strategy and highlighted the potential for continued growth both domestically and internationally.
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