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Raymond James Starts Match Group (MTCH) at Market Perform, 'Gen Z Driving Difficult Balancing Act'

April 3, 2024 4:26 PM
(Updated - April 4, 2024 4:47 AM EDT)

Raymond James analyst Andy Marok initiates coverage on Match Group (NASDAQ: MTCH) with a Market Perform rating.

The analyst comments "We are initiating coverage of Match Group (MTCH) with a Market Perform rating. Match has done an enviable job of constructing a portfolio of online dating properties comprised of some of the space’s most preeminent brands. We do see a number of positives to the story, including: 1) Position as the industry’s scale player opens opportunities for entrenchment; 2) Hinge trajectory strong with plenty of room to run; and 3) solid margin profile from scale benefits. Despite these positives, the app-based dating ecosystem is at a crossroads. Apps built to cater to Millennial tastes are struggling to adapt to changing usage patterns from Gen Z, among which the fast-paced swipe-based mechanics find less resonance. While we believe the company is capable of making the right moves, threading the needle between making fundamental changes while notdisrupting the existing payer base raises the risk that returns could be subdued while this process
plays out. We assign a Moderately Aggressive Risk / Wealth Accumulation suitability rating given Match’s solid operating history in a dynamic industry undergoing notable shifts."

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 $35.22 yesterday.

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