Benzinga | Jan 4, 2022 02:23PM EST

Wolfe Research Sees Sharp Upside In Match Group Betting On Online Dating, Apple

* Wolfe Research analyst Deepak Mathivanan initiated coverage of Match Group Inc (NASDAQ:MTCH) with an Outperform rating and $163 price target in a note partially titled "A Lot to Love."

* The price target implies an upside of 25%.

* Mathivanan believes that online dating is one of the few categories on the Internet where there is still significant room left for secular penetration gains.

* Online dating should benefit from mid-term post-pandemic tailwinds, Tinder "remains a juggernaut," Hinge is seeing strong growth, and its story is still in the early innings.

* Apple Inc's (NASDAQ:AAPL) App Stores fee change could "nicely" boost Match's EBITDA margin.

* Match provides online dating products with a vast portfolio of different online dating service providers, including Tinder, Match.com, OkCupid, PlentyOfFish, and Meetic.

* Price Action: MTCH shares traded lower by 2.92% at $130.31 on the last check Tuesday.