Match Group stock price target raised to $33 by JPMorgan on early signs of Tinder turnaround

Investing.com - JPMorgan has raised its price target on Match Group (NASDAQ:MTCH) to $33.00 from $28.00 while maintaining a Neutral rating on the stock following the company’s second-quarter results. According to InvestingPro analysis, Match Group appears undervalued at current levels, with the stock trading at a P/E ratio of 15.8x.

Match Group reported revenue of $864 million, flat year-over-year but exceeding the high end of guidance by $4 million. The outperformance was primarily driven by the Tinder app and advertising revenue, according to JPMorgan’s analysis. The company maintains strong profitability with a 71.9% gross margin and generated $3.45 billion in revenue over the last twelve months. Get deeper insights with a comprehensive Pro Research Report, available exclusively on InvestingPro.

Tinder’s user metrics showed early signs of improvement, with monthly active users declining 8-9% in the quarter compared to a 9-10% drop in the previous quarter. New user registrations fell 7%, a significant improvement from the 15% decline reported a few months ago.

JPMorgan noted that while the Tinder turnaround remains in early stages with "a lot of work to be done," the firm is encouraged by initial progress and finds the Tinder product roadmap "the most compelling we can remember."

The firm raised its 2025 revenue estimate for Match Group by 2% and its free cash flow forecast by 7%, with the adjustments largely attributed to changes in foreign exchange rates and tax factors.

In other recent news, Match Group reported its second-quarter earnings for 2025, showing steady revenue that slightly surpassed forecasts, while earnings per share met expectations. However, the company experienced a slight decline in operating income. Following these results, Evercore ISI raised its price target for Match Group to $38 from $32, maintaining an "In Line" rating, citing a "modest beat and raise" aided by favorable foreign exchange conditions. Similarly, Goldman Sachs increased its price target to $42 from $39, maintaining a Buy rating. This adjustment was influenced by Match Group’s emphasis on product initiatives for the Tinder app and strong momentum in Hinge, especially in international markets. These developments reflect the company’s strategic focus and market response to its recent performance.

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