On Wednesday, Jefferies adjusted its outlook on Bumble Inc. (NASDAQ:BMBL), reducing the price target to $13.00 from the previous $14.00 while maintaining a Hold rating on the stock.
The adjustment comes in the wake of the company's fourth-quarter revenue aligning with Wall Street expectations, but with a first-quarter revenue guide falling short by 4% at the midpoint. This revision indicates that revenue growth may decelerate to high single digits for the first time since Bumble became a public company.
The analyst noted a change in the full-year 2024 revenue guidance, now projected at 8-11% growth, down from the earlier "at least high single digits" forecast. This revision follows a trend of softening user growth in the U.S. market.
In response to these developments, Jefferies has lowered its full-year 2024 revenue estimate by 2%. Despite the decrease in revenue projections, the firm has increased its estimate for the company's full-year 2024 EBITDA by 5%, reflecting the impact of restructuring.
Bumble's recent performance has been a mix of steady fourth-quarter earnings and a less optimistic revenue outlook for the coming quarter. The company's guidance adjustment is a significant factor in the revised price target, as it signals a potential slowdown in the growth trajectory that investors and analysts have been monitoring.
The changes in the financial estimates for Bumble Inc. indicate a cautious approach by Jefferies, taking into account both the recent earnings report and the company's forward-looking statements. The firm's decision to maintain a Hold rating suggests a wait-and-see stance regarding Bumble's future performance in the evolving online dating market.
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