Deutsche Bank Starts Match Group (MTCH) at Buy

Deutsche Bank initiated coverage on Match Group (NASDAQ: MTCH) with a Buy rating and a price target of $18.

Analyst Ross Sandler said, "Two things need to happen to make money from here: 1) Tinder needs to maintain its strong momentum, and 2) the core business needs to continue to grow modestly and expand margins. MTCH is one of the few public smid-cap internets that is a category leader in its subsector, similar to ZG, GDDY, TRIP, etc, hence should trade to a growth-adjusted premium multiple, above current levels. MTCH is the dominant horizontal play in the dating space for both PC and mobile. Financial performance in 2015 was sub-par and masked by several one-time items, but we expect 2016 profitability to improve meaningfully, as shown below. In summary, we would put MTCH toward the top of any smid cap value internet book."

For an analyst ratings summary and ratings history on Match Group click here. For more ratings news on Match Group click here.

Shares of Match Group closed at $13.84 yesterday.

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