JMP analyst initiates Grindr stock with Market Outperform rating

Published 30/06/2025, 10:50
JMP analyst initiates Grindr stock with Market Outperform rating

Investing.com - JMP Securities initiated coverage on Grindr (NYSE:GRND) with a Market Outperform rating and a $27.00 price target on Monday. According to InvestingPro data, the stock has delivered an impressive 81% return over the past year, with analysts’ targets ranging between $24 and $26.

The research firm believes the LGBTQ+ dating app company is "uniquely positioned to monetize its significant gay social network" globally.

JMP highlighted Grindr’s global opportunity, noting that "the importance of travel turns local network effects into global ones," while the company has "significant room left to localize its product to increase engagement."

The firm also pointed to potential growth in international customers’ lifetime values over time as the company continues to adapt its offerings.

JMP expressed confidence in Grindr’s "product-focused management team that is culturally aligned with its users," adding that the company has "significant room to compound growth" while maintaining its "40%+ margin profile."

In other recent news, Grindr reported its Q1 2025 earnings, revealing a revenue of $94 million, which fell short of the $95.66 million forecast. Despite this, the company demonstrated a robust year-over-year growth of 25% and raised its full-year revenue growth guidance to 26% or greater. The company plans to continue investing in AI and product development, with over 40 new product launches targeted for 2025. Furthermore, Grindr’s management emphasized strong monetization and user engagement, raising its full-year 2025 revenue and margin guidance. Goldman Sachs adjusted its outlook on Grindr, increasing the price target on the company’s shares to $26 from $20, while maintaining a Buy rating. The firm expressed confidence in Grindr’s growth prospects, citing the company’s performance and strategic initiatives. Additionally, Grindr has launched new safety features and a safety and privacy center, along with updates on its long-term initiatives like Woodwork, marking its entry into the men’s health category.

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