Wells Fargo Upgrades Match to Overweight on ‘Compelling’ Valuation

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Match stock price dipped recently after the company guided below the Street consensus. Investors are also more skeptical given the pending CEO transition. However, Fitzgerald said that new CEO Bernard Kim is a “strong addition” to Match.

“MTCH for the first time disclosed companywide MAU, pushing back on recent bear thesis (fueled by third-party app data of questionable accuracy) on declining user engagement. While we expect crosswinds to continue (likely for multiple quarters), we view fundamental opportunity as very much intact and valuation as compelling at current levels,” the analyst noted in a client note.

Net-net, Fitzgerald continues to see Match as a “best-in-class operator and manager of a strategically attractive portfolio of dating assets.”

By Senad Karaahmetovic