Match Group (NASDAQ:MTCH) got a slight bump upward in pre-market trading Thursday as Citi analyst Ygal Arounian came out with a roundly neutral view of the online dating company.
In fact, Arounian was so middle-of-the road with his opinion of Match (MTCH) that he started his coverage of the company with a neutral rating and comments practically designed to split the difference in views on Match (MTCH) right down the middle.
Arounian said Match (MTCH) has “attractive catalysts,” but also “enough uncertainty [in the] near term,” including from its Tinder subsidiary.
“Match currently has multiple new initiatives that are too early for us to get a feel for,” Arounian said in a research note. Arounian added that Tinder is currently undergoing “a rebuild of sorts” that includes efforts at better branding and monetizing of the service.
According to Arounian, investors might want to be cautious about Match (MTCH) as he believes it unlikely that the company’s shares “work long-time without Tinder seeing improvements.”
Arounian also set a $55-a-share price target on Match’s (MTCH) shares.
Wall Street analysts and Seeking Alpha authors both have consensus buy ratings on Match’s (MTCH) stock. Seeking Alpha’s Quant System, which historically outperforms the stock market, agrees with Arounian and gives Match shares a rating of hold.