Match Group, Incorporated (NASDAQ: MTCH) – Buy Recommendation – $14.25 PT

The 25-day IPO quiet period on Match Group, Incorporated will come to an end on December 14, 2015, allowing the firm’s IPO underwriters to publish reports and recommendations on December 15.

Match Group is a Dallas-based company that provides dating products worldwide across a wide variety of websites, including Match.com. (See our IPO preview of MTCH here; we also previewed the quiet period event on our IPO Insights platform.)

Match Group’s share price will likely see a temporary increase as a result of the release of underwriter reports. Current research shows a significant potential for above-market returns in the five days prior to and two days after the conclusion of a company’s quiet period.

Early Market Performance Sparks Interest

Match Group was priced at $12, at the low end of its expected price range of $12 to $14. The stock opened at $13.50 and closed at $14.74 for an increase of 22.8 percent on its first day of trading. It reached a high of $15.20 on the following day, although the stock has declined slightly since then to trade at 13.25 (market close 12.5.2015).

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(Nasdaq.com)

Business Overview: Operator of Dating Websites

Match Group is known primarily for its main dating website called Match.com, although the company operates and maintains around 45 brand names including , OkCupid, PlentyOfFish, OurTime, Tinder, Twoo, Meetic, SingleParentMeet, PetPeopleMeet, SpeedDate, LoveandSeek, and more. It websites encompass 38 languages across 190 countries. The company also provides various test preparation, college counseling, and academic tutoring services.

Match Group currently has an estimated 59 million monthly active users (MAU) and approximately 4.7 million paid members through the quarter ended September 30, 2015.

Match Group is a wholly owned subsidiary of IAC/InterActive Corp, and subsequent to the initial offering, IAC will own all of the outstanding class B shares, which have greater voting power. Therefore, IAC will retain control over Match, including the election of board members, acquisitions or mergers, and payment of dividends.

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