Goldman Sachs Reiterates Buy Rating on Grindr (GRND)
Goldman Sachs analyst Eric Sheridan reiterated a Buy rating and $20.00 price target on Grindr (NYSE: GRND).
The analyst comments "In its Q4’24 earnings report, Grindr (GRND) management framed a few key themes: 1) key priorities outlined for 2025, with an emphasis around executing on a robust product roadmap, capitalizing on the Gayborhood expansion opportunity and strengthening Grindr’s global brand; 2) Q4 revenue outperformance driven primarily by a large direct brand campaign; 3) reiterated commitment toward investments scaling in 2025 to support product roadmap and engineering talent needs throughout the year; & 4) commitment toward driving capital returns with the announcement of a new $500mm share repurchase program. While near-term debates will likely remain around the magnitude of investments in headcount/product development initiatives, and how this translates into user growth/engagement in the medium-to-long term, we continue to view the company as having best in class margins, and incremental investments in 2025-2026 to be supportive long-term user growth initiatives. We reiterate our Buy rating and $20 12-month price target on the shares as we continue to view GRND as having a user demographic and core proposition that have performed well against industry debates (user growth and engagement dynamics) with a robust product roadmap to support long-term user growth and engagement on the platform."
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Shares of Grindr closed at $18.69 yesterday.