SunTrust's Robert "Bob" Peck said Match Group Inc (NASDAQ: MTCH) is likely to benefit from strong paid member count growth in the second
quarter.
"Ahead of the 2Q earnings we believe 1) another ~220 million paid member counts (PMCs) added with a majority from Tinder," Peck
wrote in a note.
Peck forecast year-over-year dating margin improving to mid-30s, while continued improvement of mobile conversion, versus
desktop, is strengthening turnaround story of legacy sites.
Related Link: Interested
In Microcaps? Here's One That Could Have The Next Tinder
That said, Peck expects FX headwinds impacting international revenues, which are primarily euro-denominated. Further, the
analyst said the company could give commentary around impact of the new Apple Inc. (NASDAQ: AAPL) app store fee and Google (Alphabet Inc (NASDAQ:
GOOG) (NASDAQ: GOOGL))'s reported change.
"We reiterate our Buy rating and establish 2017 year-end PT of $18 from a 2016 year-end PT of $15," Peck added.
Match Group, a provider of dating products, will release its second quarter financials after July 26's market close.
At time of writing, Match Group shares rose 1.34 percent to $15.90.
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Latest Ratings for AAPL
| Date |
Firm |
Action |
From |
To |
| Jul 2016 |
Longbow Research |
Initiates Coverage on |
|
Buy |
| Jun 2016 |
Goldman Sachs |
Maintains |
|
Buy |
| May 2016 |
UBS |
Maintains |
|
Buy |
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