Goldman Sachs upgraded online dating companies Match Group and Bumble to buy from neutral.
Match's stock increased 1% on Thursday, while Bumble's stock remained unchanged.
Bumble's price goal has been lowered to $54 per share from $57, while Match's price target has been lowered to $157 from $162, according to analyst Alexandra Steiger.
Steiger told investors that both firms are "well-positioned to gain from a variety of structural market tailwinds in the years ahead" as part of a comprehensive research note on the online dating industry.
"In '21, Match Group and Bumble have underperformed the S&P 500, and we consider the current valuation as an appealing entry point into a multi-year compounding growth story."
However, the analyst cautioned that, while present prices are appealing, higher stock performance may need a greater degree of "risk-on" investor behavior.
Piper Sandler started Bumble with a neutral rating and Match with an overweight rating, in addition to Goldman's positive rating.