JPMorgan maintains Neutral on Match Group stock, $33 target

Published 06/02/2025, 09:50
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On Thursday, JPMorgan reiterated a Neutral rating on Match Group (NASDAQ:MTCH) shares with a consistent price target of $33.00. The firm’s analysis acknowledged that Match Group had largely met its investor day expectations and reported a positive trend in new user growth on Tinder during the peak season. According to InvestingPro data, Match Group maintains a "GREAT" overall financial health score and appears undervalued based on its Fair Value analysis. However, the first-quarter guidance suggested that revenue would need to increase throughout the year to meet the company’s 2025 financial outlook and current Wall Street estimates, which have been revised downward partly due to foreign exchange impacts.

Match Group also announced a CEO transition from BK to Spencer Rascoff, introducing some short-term uncertainty. Nevertheless, analysts believe this change could be positively perceived over time. InvestingPro analysis reveals that management has been actively buying back shares, demonstrating confidence in the company’s future. Spencer Rascoff has indicated his confidence in the company by announcing plans to purchase $2 million worth of Match Group stock on February 6, 2025. His compensation is also structured to align closely with shareholder returns, with the company maintaining a perfect Piotroski Score of 9.

The report showed some positive movement, with Tinder’s monthly active users (MAUs) improving from a 10% year-over-year decline in October to an 8% decline in January. Despite these gains, analysts expressed that there is still significant progress required for Tinder’s paying user base to return to growth. They also noted potential challenges in achieving a revenue acceleration in the second half of the year within a difficult dating market environment.

In light of these factors, JPMorgan has slightly adjusted its forecasts for Match Group, decreasing its 2025 revenue projection by 1% and its 2025 adjusted operating income (AOI) estimate by 2%. These adjustments reflect the analyst’s cautious stance on the company’s financial performance in the coming years.

In other recent news, Match Group has seen significant developments. Barclays (LON:BARC) reduced the price target for Match Group shares to $52, maintaining an Overweight rating. This follows the company’s recent financial report, which met revenue expectations but fell short in terms of EBITDA and Tinder subscribers. On the other hand, Morgan Stanley (NYSE:MS) raised the price target for Match Group shares from $32.00 to $33.00, keeping the stock’s rating at Equalweight.

Raymond (NSE:RYMD) James maintained a Market Perform rating on the company, following the downward revision of forecasts for the first quarter and the full year of 2025 due to stronger currency exchange headwinds and comparisons to the previous leap year. BofA Securities maintained its Neutral rating on Match Group shares, with a steady price target of $36.00, acknowledging the company’s fourth-quarter 2024 revenue of $860 million, which slightly surpassed Wall Street’s expectations.

Lastly, Match Group announced the appointment of Spencer Rascoff as the new CEO, known for his growth-focused approach and experience with Zillow Group (NASDAQ:ZG). These are the recent developments in the company’s journey.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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