Citi Starts Bumble Inc. (BMBL) at Buy, 'Core Bumble App Continues to Take Share and New Product Features Begin to Take Hold'

Citi analyst Ygal Arounian initiates coverage on Bumble Inc. (NASDAQ: BMBL) with a Buy rating and a price target of $24.00.

The analyst comments "We initiate coverage of BMBL with a Buy rating and $24 target price. Bumble currently has one of the best growth rates within our Internet coverage, with expected modest EBITDA margin expansion as well. Most importantly to us is that the core Bumble app has seen continued share gain within the online dating world, and recent product launches are leading to better conversion of paid users as well (which has also seen steady gains over time). Its brand message around “women first” seems to be resonating well with younger audiences and Bumble is pushing further there with greater focus on the college audience. It is also earlier in its international runway with material room for growth. Bumble’s second largest app, Badoo, is seeing greater challenges, with more exposure to the war in Russia and a more pressured lower-income demographic. Although it will be a challenge, we expect improvement over time."

For an analyst ratings summary and ratings history on Bumble Inc. click here. For more ratings news on Bumble Inc. click here.

Shares of Bumble Inc. closed at $19.37 yesterday.

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