Investors should scoop up LGBT-focused dating app Grindr as the company rolls out two new products that can drive shares higher, according to Morgan Stanley. The bank upgraded the stock to overweight from equal weight. Its $18 price target, up from $15, signals a gain of 25% from Tuesday’s close. Analyst Nathan Feather highlighted Grindr’s “ultra-premium” subscription tier called Edge — which it is currently testing in select markets across the U.S. and cost as much as $500 per month — and its telehealth service called Woodwork, which was launched last year. GRND YTD mountain GRND year to date “Grindr is an underappreciated company with strong network effects, industry-leading engagement, and significant profitability. However, the stock is down 36% over the past year on concerns that paywall-led monetization was impacting user growth,” Feather wrote. “We initially shared those concerns, but have grown meaningfully more constructive as GRND has pivoted towards healthier product-led monetization with the upcoming launch of its ultra-premium tier EDGE (~$100- $500/mo.) and telehealth brand Woodwork (a HIMS competitor).” “Either could be individually transformative for GRND, but with both in development we now have conviction the brand can grow revenue at a 18% ’25-’28 CAGR… with far more upside than downside,” he added. Grindr shares are up 6.1% year to date, lagging the S & P 500’s 9.6% advance in that time. The stock isn’t widely covered, but four of the five who do rate it a buy, according to LSEG.
Grindr is launching two products that make the stock attractive, says Morgan Stanley
