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Investing.com - Barclays initiated coverage on Cirsa Enterprises SA (BME:CIRSA) with an Overweight rating and a price target of EUR20.00, representing a 31% upside potential from current levels.
The investment bank values the gaming company at 7x 2026E EV/EBITDA, which reflects a 14% discount to competitor Lottomatica. Barclays believes Cirsa’s current valuation of 5.4x 2026E EV/EBITDA is compelling given the company’s projected 25% adjusted net income CAGR for 2025-27E.
Barclays sees potential for Cirsa stock to re-rate further to 8x EV/EBITDA, driven by faster market growth, higher M&A spending and resulting synergies, and the company’s growing online presence.
In an upside scenario, Barclays suggests Cirsa could reach EUR27 per share, representing a 77% upside potential from current levels.
The firm expects Cirsa to benefit from likely guidance upgrades and views the company as an attractive M&A roll-up opportunity in the gaming sector.
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