Newegg commerce: Galkin family buys $5.8M in NEGG stock
On Monday, TD Cowen showed confidence in Grindr (NYSE: NYSE:GRND), raising its price target for the company’s stock from $18.00 to $20.00 and maintaining a Buy rating. The stock has demonstrated remarkable performance, with a 126.82% return over the past year and currently trades near its 52-week high of $19.20. The firm’s analysts are optimistic about Grindr’s financial performance, anticipating a continuation of robust revenue growth for the year 2025. According to InvestingPro data, the company maintains a "GOOD" overall financial health score, suggesting solid fundamentals.
The upward adjustment in the price target comes after management provided an update on January 23, indicating that the company’s growth is expected to surpass their previous revenue targets for 2024. TD Cowen has consequently increased its fourth-quarter revenue and EBITDA estimates by 7% and 5%, respectively. The revised forecast by the management now suggests fourth-quarter revenues to be between $96 million and $98 million, marking a 34.6% year-over-year increase at the midpoint, as opposed to the earlier implied outlook of revenue exceeding $88 million. This aligns with the company’s strong historical performance, as InvestingPro data shows a 31.79% revenue growth in the last twelve months, with an impressive gross profit margin of 74.36%.
Grindr’s growth trajectory is attributed to a combination of factors, including an increase in top-of-funnel monthly active users (MAU) and a modest rise in payer penetration. Analysts estimate that payer penetration will grow from 7.8% in the fourth quarter of 2024 to 8.3% in the same period of 2025. This growth is expected to be supported by an expanding product portfolio offered by Grindr.
The revised price target is based on a Discounted Cash Flow (DCF) analysis, which takes into account the present value of projected future cash flows. By maintaining a Buy rating, TD Cowen signals its belief that Grindr’s stock will continue to be a good investment opportunity, backed by the company’s strong performance and strategic growth initiatives.
In other recent news, Grindr Inc. has announced that its fourth-quarter results are expected to significantly exceed expectations for top-line growth. This comes as the company also revealed plans to redeem outstanding public and private placement warrants, with a redemption price set at $0.10 per warrant. Grindr’s updated financial outlook for 2024 projects revenue between $343 and $345 million, marking a year-over-year increase of 32%-33%, surpassing the previously forecasted growth of at least 29%. The company also reaffirmed its expectation for an Adjusted EBITDA margin of 42% or greater for the full year. Analysts from Raymond (NSE:RYMD) James have raised Grindr’s stock target to $21, maintaining an Outperform rating, while JMP Securities also reiterated a Market Outperform rating with a steady price target of $21. These ratings reflect confidence in Grindr’s strategic direction and recent achievements. Additionally, Grindr has announced plans to introduce a series of new products and features throughout 2025, aiming to enhance user experience and broaden the app’s functionality. The forthcoming features will include AI-driven personalization tools and expanded travel features, aligning with Grindr’s commitment to providing value for users and shareholders.
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