Match Group stock price target raised to $39 from $35 at RBC Capital

Investing.com - RBC Capital raised its price target on Match Group (NASDAQ:MTCH) to $39.00 from $35.00 on Wednesday, while maintaining an Outperform rating on the dating app company’s stock. According to InvestingPro data, Match Group is currently trading near its 52-week high of $38.77, with analysts’ targets ranging from $30 to $49. The company appears undervalued based on InvestingPro’s Fair Value analysis.

The firm described Match Group’s second-quarter results as "constructive," noting that the relatively new CEO’s reset commentary focused on product and engineering improvements. RBC indicated that while full recovery signals might still be several quarters away, the current management team’s approach represents an improvement. The company maintains strong profitability with a 72% gross margin and has demonstrated its commitment to shareholder value through aggressive share buybacks, as highlighted in InvestingPro’s analysis.

RBC highlighted three positive factors in its analysis: the company’s focus on growing audience first, which represents a shift in strategy; marginally promising new products and product roadmap compared to the previous quarter; and Hinge’s continued outperformance, which RBC believes could justify a significant portion of Match Group’s market capitalization.

The new $39 price target is based on 10 times enterprise value to 2026 adjusted operating income. Despite acknowledging that secular trends remain challenging for the dating app industry, RBC maintains that even modest improvement or stabilization at Tinder makes Match Group worth owning.

RBC specifically pointed to Hinge’s growing contribution to Match Group’s business, suggesting that the market currently undervalues the Tinder platform within the company’s portfolio. With an EBITDA of $960 million over the last twelve months and a market capitalization of $8.1 billion, Match Group maintains a solid financial position. For deeper insights into Match Group’s valuation and growth prospects, including exclusive ProTips and comprehensive financial analysis, visit InvestingPro.

In other recent news, Match Group’s financial performance and strategic developments have garnered attention from several major analyst firms. The company reported second-quarter revenue of $864 million, which, while flat year-over-year, exceeded expectations by $4 million, largely due to strong performance from the Tinder app and advertising revenue. Analysts have responded positively, with Wolfe Research raising its price target to $42, citing improvements in monthly active user trends and an enhanced marketing strategy. Goldman Sachs echoed this sentiment, also raising its target to $42 and maintaining a Buy rating, highlighting initiatives to improve Tinder and strong momentum in Hinge internationally.

Morgan Stanley (NYSE:MS) increased its price target to $35, noting favorable foreign exchange conditions and slight upward revisions in revenue estimates for 2025 and 2026. They project Tinder revenue growth to slightly decline in 2025 but stabilize in 2026. Evercore ISI raised its target to $38, attributing the increase to Match Group’s "modest beat and raise" in the second quarter, also aided by favorable foreign exchange rates. Lastly, JPMorgan adjusted its target to $33, acknowledging early signs of a turnaround for Tinder and the company’s second-quarter results. These developments indicate a cautiously optimistic outlook from analysts regarding Match Group’s future performance.

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