Citizens Keeps Market Outperform Rating on Grindr, Reduces Price Target to $21

Citizens JMP lowered the firm's price target on Grindr to $21 from $23 and keeps an Outperform rating on the shares. Grindr reported better-than-expected Q3 results with revenue coming in 2% above consensus while EBITDA came in 11% above consensus, the analyst tells investors in a research note. Citizens believes Grindr has a path to 20%+ growth in 2026 and 2027.

NINGI Research is short Grindr. In a recently published report it says, \"Grindr's management has pursued aggressive monetization at the expense of its own users. This short-term extraction strategy is juicing near-term revenues, but it is eroding the platform's long-term viability.\" \"Based on our analysis and extensive interviews with former executives and employees, we believe Grindr's paying user numbers are inflated, its product is deteriorating, its user base is increasingly alienated, and its long-term prospects are deeply compromised. The result is an existential risk that markets have largely overlooked: Grindr's business model is already eroding significantly, while the fundamentals have yet to reflect it. Meanwhile, insiders appear to understand this dynamic all too well-dumping over $230 million in stock in the past twelve months,\" the report reads. \"Grindr is now a fundamentally broken business after leadership torched its only asset - its network effect - for short-term gain. The combination of a decaying product, fleeing users, questionable metrics, and the looming threat of a catastrophic margin call stands in stark contrast to Grindr's premium valuation. We believe investors are exposed to significant further downside.\" Shares of Grindr are down over 3% at $15.21 in morning trading. Reference Link