Citi analysts downgraded Bumble Inc. (NASDAQ:BMBL) from Buy to Neutral, slashing the price target from $12 to $6. The downgrade follows Bumble's disappointing outlook, which is attributed to a total rebuild of the core Bumble app. Despite a refresh in April, the app continues to face top-of-funnel challenges.

The analysts emphasized the significant cuts to future estimates, with 2025 and 2026 EBITDA projections reduced by 33% and 43%, respectively. Bumble also lowered its 2024 guidance and did not provide a clear timeline for a turnaround, further limiting visibility on the company's outlook.

While management's approach focuses on a more structural rebuild rather than short-term fixes, the need for such a comprehensive overhaul suggests a deterioration in Bumble's ecosystem. Given the complexity of such fixes, the analysts moved to the sidelines, awaiting signs of improvement before reassessing the stock's potential.