Bumble Stock Price Target Raised to $7 by TD Cowen Amid Restructuring Plan

TD Cowen has raised Bumble's (BMBL) price target to $7, maintaining a Hold rating. The adjustment follows Bumble's restructuring plan, which aims to save up to $40 million annually. Despite savings, a significant portion will be reinvested into the business to support future growth. Bumble has experienced a 32.6% revenue growth over the past year, but profitability metrics reveal challenges. The company's financial health presents a mixed picture, with a negative EBITDA margin and a net margin of -54.06%. Bumble's cash-to-debt ratio is 0.32, indicating limited liquidity relative to debt obligations.

TD Cowen has increased its price target for Bumble Inc. (NASDAQ: BMBL) to $7.00 from $6.00, while maintaining a Hold rating on the stock. This adjustment comes in the wake of Bumble's June 25 restructuring announcement, which the company expects to generate up to $40 million in annual savings [1]. The majority of these cost savings are anticipated to be reinvested back into the business to support future growth, as per management guidance.

The revised price target reflects the firm's updated outlook for Bumble's second quarter, 2025, and long-term performance, based on the anticipated cost savings from the restructuring. TD Cowen will be closely monitoring additional details on Bumble's updated strategy, focusing on core innovation and member health initiatives.

In other recent news, Bumble Inc. reported its first-quarter 2025 earnings, revealing a revenue of $247 million, which exceeded the projected $246.65 million. However, the company's earnings per share (EPS) slightly missed forecasts, coming in at $0.13 compared to the expected $0.14. Several analysts have adjusted their price targets for Bumble following these developments. Goldman Sachs raised its target to $9, maintaining a Buy rating, while RBC Capital increased its target to $7, keeping an Outperform rating. Evercore ISI also lifted its target to $7, maintaining an In Line rating, and UBS adjusted its target to $6 with a Neutral rating [2].

Bumble's Board of Directors approved a 30% reduction in headcount to optimize execution, expected to save approximately $40 million annually. The company plans to reinvest a substantial portion of these savings into product and technology initiatives. Additionally, Bumble aims to reduce its marketing expenditure by $20 million in the second quarter compared to the first quarter.

References:
[1] https://ng.investing.com/news/analyst-ratings/bumble-stock-price-target-raised-to-7-from-6-at-td-cowen-on-cost-savings-93CH-2031673
[2] https://www.investing.com/news/analyst-ratings/bumble-stock-price-target-raised-to-7-from-6-at-td-cowen-on-cost-savings-93CH-4158094