Bumble (NASDAQ:BMBL) shares rose more than 3% on Friday after Loop Capital upgraded the company to Buy from Hold with a price target of $18.00. The analysts noted that it’s the first time they’ve issued a Buy rating on Bumble since they began covering the company two and a half years ago.

The analysts mentioned that the stock is currently trading near its 52-week low and has declined over 30% year-to-date, which they view as de-risked.

The analysts highlighted Bumble’s strong cash position, effective use of interest rate swaps, and free cash flow generation as factors that protect the company’s balance sheet. In their commentary, the analysts also pointed out that Bumble trades at a lower EV/EBITDA multiple compared to its competitor Match Group and that investor sentiment is bearish, potentially undervaluing Bumble’s growth prospects in the online dating industry.

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