Grindr’s Price Target Raised at Raymond James After Investor Day

Raymond James analysts slightly raised their price target for Grindr (NYSE:GRND) to $15 from $14, maintaining an Outperform rating following the company's Investor Day. Shares are currently trading more than 3% higher intra-day.

Investor Day presentations highlighted the company's strategic focus on leveraging user insights to significantly scale its revenue products over the near and medium term. This approach aims to drive strong revenue growth while maintaining its industry-leading margin profile. Key takeaways from the event include Grindr’s unique positioning in the digital gay life space, which gives it a competitive edge as it expands its product offerings. Additionally, the numerous product releases planned between now and 2027 are expected to significantly boost payer conversion and average revenue per paying user (ARPPU).

The company's efforts to extend into adjacent categories beyond relationships, referred to as its “digital gayborhood” strategy, offer another potential growth avenue. These combined product initiatives are projected to support a medium-term revenue growth trajectory of over 20% while sustaining high margins.