SunTrust's Bob Peck Previews Match Group's Q2 Earnings

SunTrust's Robert "Bob" Peck said Match Group Inc (NASDAQ: MTCH) is likely to benefit from strong paid member count growth in the second quarter.

"Ahead of the 2Q earnings we believe 1) another ~220 million paid member counts (PMCs) added with a majority from Tinder," Peck wrote in a note.

Peck forecast year-over-year dating margin improving to mid-30s, while continued improvement of mobile conversion, versus desktop, is strengthening turnaround story of legacy sites.

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That said, Peck expects FX headwinds impacting international revenues, which are primarily euro-denominated. Further, the analyst said the company could give commentary around impact of the new Apple Inc. (NASDAQ: AAPL) app store fee and Google (Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL))'s reported change.

"We reiterate our Buy rating and establish 2017 year-end PT of $18 from a 2016 year-end PT of $15," Peck added.

Match Group, a provider of dating products, will release its second quarter financials after July 26's market close.

At time of writing, Match Group shares rose 1.34 percent to $15.90.

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