Bumble Inc stock (NASDAQ: BMBL) is up roughly 45% on Wednesday but BMO Capital says it’s a drop in the bucket compared to what’s coming ahead.
Bumble stock could climb to $48 a share
This morning, analyst Daniel Salmon upgraded the stock to “outperform” with a price target of $48 that represents another 100% upside from here.
Salmon sees Bumble as a reopening play and expects the Texas-based company to benefit as COVID restrictions continue to ease. Solid user growth driven from international expansion was among other reasons that he’s bullish on BMBL.
The BMO analyst also likes Bumble stock from the valuation perspective as shares are still down about 70% from $75 at which they debuted on the Nasdaq Stock Exchange in February 2021. Salmon is bullish on the dating space at large.
Why did Bumble stock price surge today?
The sharp increase in the stock price on Wednesday was related to Bumble’s Q4 earnings report. The U.S. firm topped Street estimates for user growth by 5 million in the recent quarter. It also reduced net loss by nearly 44%.
Bumble terminated its services in Russia and Belarus in response to the ongoing war in Ukraine. Still, it’s Q1 and full-year guidance remained in line with the FactSet consensus, adding to shareholders and analysts’ confidence in the company.
The dating platform expects a $2.0 million hit to revenue this quarter due to the Russia-Ukraine conflict.
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