Deutsche Bank said in a research note that Match Group Inc
Tinder: Key To Story
Analyst Ross Sandler believes Tinder is the key to the story and continues to dominate the mobile dating space. The analyst views Tinder's over 20 million users, industry high engagement and over 1 million paying subscribers as some of the best metrics for any mobile app. With most look-alikes are expected to see further weakness in 2017, the analyst expects Tinder's asset value to solidify.
Deutsche Bank expects third-quarter revenues and EBITDA of $317 million and $106 million, with Tinder providing much of the growth. The firm estimates 20 percent growth in dating revenues, with Tinder PMC expected at 1.3 million. For dating, excluding Tinder, the firm estimates largely flat PMC.
Deutsche Bank expects the company to reiterate its fourth-quarter guidance of 4–6 percent sequential growth for dating business. The firm also expects the company to give incremental commentary on new monetization launches. The EBITDA guidance for the year is estimated at $408 million, in line with Deutsche Bank's estimate. The firm sees third-quarter EBITDA and earnings per share of $106 million and $0.21, respectively.
Deutsche Bank believes the outlook for the company's dating assets remains strong for fiscal year 2017 and beyond. The firm expects a ramp up in the conversion of the daily average users to paying subscribers from the current 5 percent, with new monetization products and international expansion. The firm also sees benefits from the ad platform it has invested in.
The core Match properties are likely to return to PMC growth and the transition of the legacy desktop businesses to mobile would also help, the firm noted.
Deutsche Bank has a Buy rating and a $20 price target on the shares of Match Group.
At last check, shares of Match Group were advancing 3.31 percent to $18.55.
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|Jul 2016||Deutsche Bank||Maintains||Buy|
|Jul 2016||JP Morgan||Upgrades||Neutral||Overweight|
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