Aegis Capital Believes Match Group Inc (MTCH) Still Has Room to Grow

In a report released yesterday, Victor Anthony from Aegis Capital maintained a Buy rating on Match Group Inc (NASDAQ: MTCH), with a price target of $65. The company’s shares closed yesterday at $56.05, close to its 52-week high of $56.23.

Anthony noted:

“We rolled forward our SOTP-based valuation for MTCH to year-end 2019 and in so doing, increase our price target to $65 from $55 (yr-end ’18). Our valuation also reflects tweaks (Subs & APRU) to our model, which increased our 2019 revenue and Adj. EBITDA estimates by 1% each, and increased our 2020 revenue and Adj. EBITDA by 3% each. We forecast FCF per-share to grow at a 20% CAGR to reach $2.20 in 2020, from an estimated $1.55 in 2018. MTCH could use its strong FCF to repurchase shares in addition to accretive M&A. The shares trade at 21x our 2019 Adj. EBITDA estimate, compared to comparable Internet sub-based model NFLX (Hold), that trades at 47x our ’19 Adj. EBITDA, and social media (FB, TWTR), that trades at 13x our ’19 Adj. EBITDA.”

According to, Anthony is a 5-star analyst with an average return of 17.8% and a 66.1% success rate. Anthony covers the Services sector, focusing on stocks such as Qurate Retail Group Inc, Pandora Media, and Cimpress.

Match Group Inc has an analyst consensus of Moderate Buy, with a price target consensus of $53.

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The company has a one-year high of $56.23 and a one-year low of $22.70. Currently, Match Group Inc has an average volume of 2.43M.

Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is negative on the stock.

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Match Group, Inc. engages in providing dating products. Its brands include: Match, Tinder, PlentyOfFish, Meetic, OkCupid, Pairs, Twoo, OurTime, BlackPeopleMeet, and LoveScout24. It operates through the following segments: Dating and Non-Dating. The Dating segment provides dating products.