Online dating services company Match Group’s shares got a rating boost from BTIG, citing valuation. Match is the owner of popular dating sites like Tinder, Match.com, and OkCupid.
BTIG analyst Jake Fuller raised his rating on Match to buy from neutral. Fuller has a price target of $175.
Fuller wrote that the year-to-date pullback is the immediate factor behind the rating upgrade. He also sees upside to second-half 2021 and 2022-2025 numbers due to re-opening tailwinds, new products, the Hyperconnect acquisition and emerging brand/live streaming opportunities.
"The pandemic depressed Tinder ARPU [average revenue per user]," but a rebounding economy will help, the analyst added. "While we don't see another Tinder, we do see a $1 billion-plus opportunity across MTCH's emerging brand portfolio and Hyperconnect should add several hundred million more to that."