Bumble's (BMBL) financials appear to be nearing a trough, with registrations and users stabilizing, Morgan Stanley said in a note Thursday following its Q4 results.

"BMBL delivered a well-rounded print with better than feared top-line and a substantial bottom-line improvement," it said.

The report said the company is setting up for new "chapters"-based product launch in mid-26 as Bumble focuses on quality of

connections overs quantity.

"From here, the question is largely on execution & user perception of these features," the note said.

"We continue to be believers that a dating app with strong product-market fit can stabilize the user base, but need to see results to become more constructive which leaves us on the sidelines for now," the note added.

Morgan Stanley maintained its equal-weight rating on Bumble while raising its price target to $4.00 from $3.50.

Shares were up more than 35% in Thursday trading.

Price: 3.85, Change: +1.01, Percent Change: +35.56