Tinder gets all the attention, but one analyst thinks the rest of parent company Match Group deserves some love.
For one, Match is taking steps to revitalizing its older platforms, and that could lead to an expansion of paid-member counts on services other than Tinder.
The company has been transitioning its more traditional online dating products to mobile, but management has expressed some concern that the various services appear too similar after the move to smaller screens. Jefferies analyst Brian Fitzgerald argues that the company can spend more time differentiating its products and advertising unique features now that the transition to mobile has been mostly completed.
He points to Match.com’s new “missed connection” feature, which lets users chat with people they passed walking down the street, as an example of a unique element that could attract people to the platform.
Plus, Match Group’s platforms may be well positioned to benefit as advertising continues its shift to digital outlets. “Mobile apps that have specific targeted data (such as Match’s family of products) are increasingly valuable as ad dollars shift to mobile,” Fitzgerald wrote.
He also likes Tinder’s attempts to draw in more users by creating a web version of the app and allowing people to make accounts without linking their Facebook profiles. These efforts make Tinder accessible to a wider audience and increases the pool of potential paying members.
Fitzgerald initiated coverage of Match Group shares with a Buy rating, setting a price target of $21, which is 21% above a recent price of $17.41.
Big Picture: Match Group has optimized its dating services for the mobile world. The company hopes to recreate Tinder’s success at Match.com.