BTIG analyst Clark Lampen maintained a Buy rating on Gambling.com (GAMB – Research Report) yesterday and set a price target of $15.00.
Clark Lampen has given his Buy rating due to a combination of factors. Gambling.com’s 3Q revenue aligned with Lampen’s optimistic forecasts, surpassing the Street consensus by 6%. This was primarily due to performance marketing headwinds and mix factors. Although these headwinds are anticipated to be temporary, the newly launched Media Partnerships business is expected to continue growing next year, which keeps revenue forecasts for 2024 relatively stable. However, Lampen anticipates a dip in EBITDA due to the impact of margin-dilutive mix-shift effects.
Despite this, Lampen believes that scaling the partnerships business will ultimately be beneficial for the enterprise in the long-term, despite potential short-term challenges. The company’s performance marketing revenue of $20.4M exceeded Lampen’s estimate of $19.4M, with an increase in depositing customers compensating for weaker revenue per customer. Other contributing factors include adjustments to Google rankings and a challenging operating environment for Casino player acquisition in the UKI. In conclusion, despite a slight adjustment to EBITDA and revenue forecasts, Lampen maintains a Buy rating for GAMB, with a price target of $15.
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Gambling.com (GAMB) Company Description:
Gambling.com Group Ltd is a multi-award-winning performance marketing company and a provider of digital marketing services in the online gambling industry. Its principal focus is on iGaming and sports betting. It generates revenue by referring online gamblers to online gambling operators.
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