Trading Nvidia earnings report? These are the entry and exit levels to watch for
On Thursday, Jefferies analyst James Heaney adjusted the price target for Bumble Inc. (NASDAQ:BMBL) stock, reducing it to $5.00 from the previous $7.50, while maintaining a Hold rating on the shares. The revision reflects a cautious stance on the company’s financial outlook, as Bumble continues to navigate through a period of significant change. According to InvestingPro data, the stock is currently trading near its 52-week low of $4.61, having declined over 55% in the past year.
The company, known for its female-centric dating app, is undergoing a transformation, with recent executive changes, including the appointment of Whitney Wolfe as the new CEO. Wolfe’s primary focus will be to drive product improvements as part of the company’s broader turnaround efforts. Despite current challenges, InvestingPro analysis indicates the company maintains strong liquidity, with a healthy current ratio of 2.47.
Jefferies has revised its financial forecasts for Bumble, indicating a less optimistic view of the company’s future revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA). The firm has reduced its FY25E EBITDA estimate by approximately 17% and lowered the revenue projection for FY25 by 9%, which implies an anticipated year-over-year decline of about 10%. Currently, Bumble generates $267.07M in EBITDA with a market capitalization of $719.32M. For deeper insights into Bumble’s financial health and growth potential, check out the comprehensive analysis available on InvestingPro, which features 12 additional investment tips for this stock.
The updated EBITDA margin forecast suggests a contraction of around 300 basis points. This margin compression is a significant factor in the reduction of the estimated EBITDA, leading to the lowered price target for Bumble’s stock.
Despite the downward revision, Jefferies sees some level of valuation support for Bumble at its current stock price. The firm’s stance indicates a balance between recognition of the company’s ongoing challenges and the potential for stabilization in the stock’s valuation.
In other recent news, Bumble Inc. reported its fourth-quarter 2024 earnings, with revenue slightly surpassing forecasts at $262 million, compared to the expected $260.03 million. Despite this, Bumble anticipates a revenue decline of 7-10% for the first quarter of 2025. The company is focusing on product innovation and ecosystem health under the leadership of returning CEO Whitney Wolfe Herd. Meanwhile, Citi analysts have reduced Bumble’s price target to $6.80 from $8.00, maintaining a Neutral rating due to the company’s first-quarter guidance falling short of expectations and anticipated margin compression. Stifel analysts also adjusted their outlook, lowering the stock’s price target to $6.00 from $7.00 while keeping a Hold rating. Both firms highlight the challenges Bumble faces in distinguishing itself in a competitive market. These developments underscore the ongoing strategic adjustments and financial challenges Bumble is navigating.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.