David Katz, an analyst from Jefferies, maintained the Buy rating on Gambling.com (GAMB – Research Report). The associated price target is $18.00.
David Katz has given his Buy rating due to a combination of factors which include Gambling.com’s strong performance in the fourth quarter as well as its promising growth prospects in the United States. The company’s revenues and adjusted EBITDA surpassed both Jefferies’ and Street estimates, indicating robust top and bottom-line growth. This performance can be primarily attributed to the company’s successful expansion into new states, with the launch in North Carolina being a recent example. Furthermore, the strategic acquisition of assets such as Freebets.com is anticipated to bolster revenue streams and enhance Gambling.com’s presence in the online sports betting (OSB) space.
The acquisition of Freebets.com is expected to contribute significantly to Gambling.com’s financials, projected to bring in an additional $10 million in revenue. This move aligns with the company’s growth trajectory and expansion strategy within North America. Additionally, the overall profitability, despite being marginally lower than forecasts, remains strong and suggests a healthy financial position. The guidance provided was in line with expectations, which could lead to a neutral market reaction in the short term, but Katz’s assessment reflects confidence in the company’s ability to maintain its growth momentum and profitability in the longer term, justifying the Buy rating.
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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.
