After its recent fall,
stock is now an attractive buying opportunity, according to Deutsche Bank.
The back story. Match Group stock (ticker: MTCH) has risen more than 70% year to date because of strong earnings. But the shares have fallen about 19% from its August high on competition concerns.
(FB) entered the U.S. online dating market last month.
Match Group owns Match.com, Tinder, and other online-dating brands.
What’s new. Deutsche Bank analyst Kunal Madhukar raised his rating to Buy from Hold for Match Group stock on Sunday.
“We think the overreaction to Facebook Dating coming to the US…is exactly that—an overreaction,” he wrote. “We believe the business fundamentals remain untarnished, and if anything, are stronger after Tinder began offering consumers more payment choice on Android.”
Match Group stock was up 4.1% to $77.50 Monday’s morning trading.
The analyst said Facebook’s demographic is much older than Tinder’s core audience. Madhukar added that most customers also use multiple dating apps.
“We think current valuations present an attractive buying opportunity for investors who can take a 6-12 month view on the stock,” the analyst wrote.
Looking ahead. Madhukar lowered his price target for Match Group stock to $91 from $93. That lower target still implies 17.4% upside.
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