Morgan Stanley analyst Nathan Feather has expressed optimism about Grindr, particularly due to the introduction of its 'ultra-premium' subscription tier, Edge, which could cost between $100 and $500 per month, and its telehealth service, Woodwork.
These initiatives are seen as pivotal for the company's revenue growth, especially as Grindr has faced a 36% decline in stock value over the past year due to concerns about user growth linked to monetization strategies. Feather noted that while initial concerns about paywall impacts were valid, the shift towards product-led monetization has improved the outlook for Grindr.
He projects an 18% compound annual growth rate (CAGR) for revenue from 2025 to 2028, suggesting significant upside potential. Currently, Grindr's stock has increased by 6.1% year to date, but it still trails behind the S&P 500's 9.6% gain.
Despite limited coverage, four out of five analysts who do rate the stock recommend buying it, indicating a generally positive sentiment among those following the company