Morgan Stanley says investors should take note of LGBT-focused dating app Grindr as the company unveils two new products that could boost its stock price. The bank upgraded the stock from equal weight to overweight. The price target has been raised to $18 from $15, implying a 25% upside from Tuesday’s closing price. Analyst Nathan Feather highlighted Grindr’s “ultra-premium” subscription tier called Edge (currently being tested in some markets across the U.S. and costing as much as $500 a month) and a telemedicine service launched last year called Woodwork. GRND YTD Mountain GRND Year-to-date “Grindr is an undervalued company with strong network effects, industry-leading engagement, and strong profitability. However, the stock has fallen 36% over the past year on concerns that paywall-driven monetization is hurting user growth,” Feather wrote. “While we initially shared these concerns, we have grown meaningfully and constructively as GRND pivots to healthier product-driven monetization with the planned launch of ultra-premium tier EDGE (approximately $100 to $500 per month) and telemedicine brand Woodwork (a HIMS competitor).” “Both could be individually transformative for GRND, but as both are in development, we are now confident that the brand can grow revenue at a CAGR of 18% from 2025 to 2028…The upside is much greater than the downside,” he added. Grinder shares have added 6.1% since the beginning of the year, lagging the S&P 500’s rise of 9.6% in that time. The stock is not widely covered, but 4 out of 5 people rate it a buy, according to LSEG.
