SunTrust analyst Youssef Squali views the selloff today in shares of Match Group (MTCH) on Facebook’s (FB) launch of Facebook Dating as a buying opportunity. Match’s portfolio approach of brands, the “under-penetration” of the category in most markets served, and its leadership position in most markets should allow it to continue to show “healthy growth” with relatively limited impact from Facebook’s dating product, Squali tells investors in a research note. Further, he believes “some negative reputational overhang” from the last couple years may prevent mass adoption of Facebook’s service. In addition, Facebook’s dating feature could potentially attract an older demographic than seen on Match’s fastest growing brands such as Tinder and Hinge, says Squali. The analyst maintains a Buy rating on Match Group, whose stock is down 6% to $80.31 in midday trading.
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