Grindr (GRND) upcoming ultra-premium subscription service and direct-to-consumer telehealth business could significantly boost revenue growth and improve monetization, Morgan Stanley said in a report Wednesday.
The investment bank said the company remains a "high quality asset" with about 15 million monthly active users, industry-leading engagement and earnings before interest, taxes, depreciation, and amortization margins above 40%, while monetizing roughly 30% below peers, the report said.
The firm expects the artificial intelligence-powered EDGE premium subscription and the Woodwork telehealth business to drive the next leg of growth, with each initiative potentially generating revenue equivalent to about "one year" of the company's current annual growth, according to the report.
The firm also raised its 2026 and 2027 revenue forecasts by about 1% and EBITDA estimates by about 2%.
Morgan Stanley upgraded Grindr to overweight from equal weight and raised its price target to $18 from $15.
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