Match Group, Inc. (MTCH), with a market cap of $7.8 billion, is a leading provider of dating products. Incorporated in 1986 and based in Dallas, it operates a portfolio of over 45 brands, including well-known names like Tinder, Match.com, PlentyOfFish, Meetic, and OkCupid.
Shares of Match Group have underperformed the broader market considerably over the past year. MTCH has declined 13.5% over this time frame, while the broader S&P 500 Index ($SPX) is up 28.9%. In 2024 alone, the stock is down 19.5%, compared to SPX’s 11.2% return on a YTD basis.
Narrowing the focus, MTCH has also underperformed the S&P 500 Communication Sector SPDR (XLC), which has gained 36.2% over the past year.
Shares of Match dropped following its Q1 earnings release on May 7 despite exceeding consensus revenue and EPS estimates. The decline was driven by a drop in payers and lower-than-expected revenue guidance for the next quarter.
For the current fiscal year, ending in December, analysts expect MTCH’s EPS to fall 6.6% year over year to $2.11. However, the company’s earnings surprise history is solid. It exceeded the consensus estimate in each of the last four quarters.
Match Group stock has a consensus “Moderate Buy” rating overall. Out of 25 analysts covering the stock, 14 rate it as a "Strong Buy," one suggests a "Moderate Buy," and 10 advise a "Hold.”
This configuration is slightly less bullish than two months before, with 15 analysts advising a “Strong Buy” rating.
On May 13, Susquehanna reduced Match Group's price target to $45 from $46 while maintaining a "Positive" rating on the shares. The adjustment was due to challenges at Tinder affecting the company's fiscal Q2 and full-year outlook. However, Susquehanna remains optimistic about Match's long-term prospects, citing its leading position in the industry and innovative products.
The mean price target of $39.13 suggests a 33.1% premium to MTCH from current levels. The Street-high target of $55 represents an impressive upside potential of 87.1%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
