Bumble rises as KeyBanc upgrades on 'attractive risk reward'
Jan. 10, 2023 8:57 AM ETBumble Inc. (BMBL)By: Chris Ciaccia, SA News Editor
- Bumble (NASDAQ:BMBL) shares rose nearly 3.5% in premarket trading on Tuesday as investment firm KeyBanc Capital upgraded the dating app company, citing an "attractive risk/reward" at current levels and confidence the company can sustain strong revenue growth.
- Analyst Justin Patterson raised his rating on Bumble (BMBL) to overweight from sector weight, while also raising the firm's EBITDA forecast to be above consensus.
- "When coupled with product initiatives (e.g., Compliments, regional pricing), international ramps, and moderating FX headwinds, we are increasingly confident the core Bumble app can sustain 20%+ annual revenue growth," Patterson wrote in a note to clients.
- Patterson also noted the competitive environment looks "stable" as there was a 12 point acceleration in indexed customer growth in December. That could mean there was a month-over-month improvement in average revenue per user across many dating apps, the analyst added.
- Last month, Bank of America started coverage on Bumble (BMBL) with a buy rating, highlighting its "strong operational record" and "healthy fundamentals," among other positive attributes.
- Analysts are mostly positive on Bumble (BMBL). It has a BUY rating from Seeking Alpha authors, while Wall Street analysts rate it a BUY. Conversely, Seeking Alpha's quant system, which consistently beats the market, rates BMBL a HOLD.