Oppenheimer analyst Jason Helfstein maintained a Hold rating on Match Group Inc (MTCH) today. The company’s shares opened today at $43.93.
Helfstein wrote:
“We are maintaining our Perform rating after MTCH reported better 3Q results, but provided weaker 4Q guidance. Tinder subs +61% y/y, with revenue +100% y/y, as monetization +24% y/y. However, mgmt expects 4Q subs adds below the typical qtrly range, breaking historical seasonal patterns on higher churn from the first cohort of annual Tinder Gold subs. Increased marketing spend for Hinge and Tinder expected to weigh on near-term EBITDA margins, while TV ads proving less effective for legacy brands (Match and Meetic), suggesting slower legacy sub growth. Tinder sub growth expected to normalize in 1Q:19. ’19E margins likely flat y/y with improved leverage in ’20E. One-time $2/share cash dividend ($560M) mostly benefits parent IAC, but signals confidence in FCF generation.”
According to TipRanks.com, Helfstein is a top 100 analyst with an average return of 16.0% and a 59.9% success rate. Helfstein covers the Technology sector, focusing on stocks such as Endurance International, ANGI Homeservices Inc, and IAC/InterActiveCorp.
Currently, the analyst consensus on Match Group Inc is a Moderate Buy with an average price target of $57.60.
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Based on Match Group Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $133 million. In comparison, last year the company had a net profit of $288 million.
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.
