Fuller prefers IAC/Inter Active Corp , which owns more than 80% of Match Group shares.
"While we cannot isolate the discount embedded in IAC for Match, IAC's current market value does imply a discount of ~16% to the combined value of the Match and ANGI [Homeservices Inc.] stakes," he wrote.
shares to from late Tuesday, writing that he believes new investors haven't missed Match's rally entirely, despite the stock's 156% rise over the past 12 months. Thill wrote that Match Group shares still trade at a discount to shares of other subscription internet names, including Netflix Inc. , based on earnings before interest, taxes, depreciation and amortization (Ebitda).
Guggenheim's Jake Fuller wrote that while Tinder Gold, a paid feature launched late last year, brought in a big wave of new paying members, he believes Match will see a "lull" until it introduces its next big paid Tinder feature.
"In our experience, multiples for sub-based models can come under pressure in periods of slowing growth," Fuller wrote.
He's also concerned about Match Group's valuation, with shares up 40% since the company reported results Feb.
7, compared with a 4% gain for the Nasdaq Composite Index in that time.