12:21 PM EDT, 05/09/2024 (MT Newswires) -- Match Group's ( MTCH ) Tinder faces increasing challenges with declining "a la carte" trends and below-par monetization, resulting in minimal revenue growth for the remainder of the year, Morgan Stanley said in a note Thursday.

Tinder expects only minimal revenue growth with low single digit percentages throughout 2024, while Q3 net additions remain positive sequentially, they appear weaker compared to the same period last year, Morgan Stanley said, adding that "We believe Tinder sacrificing some short-term financials to try and reaccelerate user growth is the right strategic move, but it does further question [near-term] growth."

On the other hand, the company's dating app Hinge continues "to be a bright spot," demonstrating a robust 50% year-over-year revenue growth, showcasing that growth opportunities persist when a brand aligns closely with its target market, the note said.

Despite Tinder's challenges, the overall portfolio maintains a stable margin profile, highlighting the flexibility in cost management enabled by the diversified portfolio approach, Morgan Stanley said.

Morgan Stanley maintained its equalweight rating on Match Group ( MTCH ) and lowered its price target to $34 from $37.

Price: 30.35, Change: +0.53, Percent Change: +1.78