On Thursday, TD Cowen exhibited confidence in Grindr (NYSE:GRND), as the firm raised its price target on the shares to $14.00, up from the previous $12.00, while reiterating a Buy rating for the stock. The adjustment follows Grindr's recent announcement that it has increased its 2024 revenue guidance and set its 2027 revenue and EBITDA targets significantly higher than earlier estimates.
The company's updated 2027 revenue and EBITDA targets are 27% and 22% above TD Cowen's pre-event estimates, respectively. This optimistic revision is attributed to several factors that are expected to drive Grindr's medium-term growth. These include improvements to the core product, increased advertising revenue, and a strategic focus on international expansion.
Moreover, the potential for further growth is seen in the development of products for alternative use cases, which could provide additional revenue streams for Grindr. TD Cowen has adjusted its 2025 to 2027 revenue and EBITDA estimates upward to align with Grindr's better-than-anticipated financial outlook.
The analyst from TD Cowen expressed a positive view on the company's strategic direction, stating, "GRND raised their '24 topline guidance while laying out '27 revenue and EBITDA targets 27% and 22% above our pre-event est's.
Key medium-term growth drivers include core product improvements, advertising growth, and Int'l focus, with upside potentially driven by alternate use case products. We raised our '25-'27 rev & EBITDA est's to reflect better than expected outlook; PT to $14. Maintain Buy."
Investors and market watchers will likely keep a close eye on Grindr's performance as it works towards achieving these ambitious targets in the coming years.
In other recent news, Grindr Inc. has seen a surge in its projected revenue growth for 2024, with an expected increase of at least 25%, up from the previously forecasted 23%. This comes after Raymond James maintained its Outperform rating on Grindr and raised the price target to $15.00. The firm's analysis suggests a medium-term revenue growth trajectory of over 20% for Grindr, while maintaining high margins compared to peers.
Grindr's strategic initiatives, such as the introduction of new products like 'Right Now' and 'Roam', are expected to drive further revenue growth. The company's product expansion includes eight new offerings and new partnership-based digital services, aiming to extend the concept of a global gay community into the digital realm.
Analyst notes from TD Cowen have reaffirmed its Buy rating for Grindr, expressing confidence in the company's potential for further monetization. Meanwhile, JMP Securities maintains a "Market Outperform" rating. These recent developments reflect Grindr's commitment to enhancing its user experience, with the company investing in AI to improve communication, user matching, and platform safety.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.