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On Wednesday, Gambling.com Group Ltd. (NASDAQ:GAMB) received a reaffirmed Buy rating and a steady price target of $18.00 from Benchmark analysts. The endorsement came after the company’s fourth-quarter results surpassed expectations, with both revenue and adjusted EBITDA beating consensus estimates. With an impressive gross profit margin of 91.6% and strong revenue growth of 27.6% over the last twelve months, the company’s financial performance remains robust. InvestingPro analysis reveals 11 additional bullish indicators for the company. The analysts also acknowledged Gambling.com’s guidance for 2025, considering it a conservative baseline with potential for outperformance.
The company’s recent performance has been overshadowed by an ongoing audit process with Odds Holdings, which is expected to conclude by late March or early April. This situation has temporarily halted the possibility of a secondary offering for existing shareholders. Speculation among investors about a potential offering, especially after this morning’s pre-announcement, may have contributed to the recent decline in the company’s share price. Despite recent volatility, InvestingPro data shows the stock has delivered an impressive 79.4% return over the past year, with current analysis suggesting the stock is slightly undervalued.
Benchmark’s analysts see the current dip in share price as an opportunity for investors to buy. They reiterated their positive outlook based on the company’s strong quarterly performance and the expectation that management will likely exceed the provided 2025 guidance. According to InvestingPro’s comprehensive analysis, the company maintains a "GREAT" financial health score of 3.61, operates with moderate debt levels, and demonstrates strong cash flows. For detailed insights and a complete Pro Research Report covering all aspects of GAMB’s performance, visit InvestingPro.
Despite the audit with Odds Holdings and the resulting inability to conduct a secondary offering at this time, Gambling.com’s fundamentals appear robust according to Benchmark. The analysts’ reiteration of the Buy rating and price target suggests confidence in the company’s future financial performance and potential growth in the market.
Investors are keeping a close eye on Gambling.com’s next moves, especially considering the potential impact of the ongoing audit and the anticipation of its completion. The company’s adherence to its 2025 guidance amidst these developments continues to be a focal point for market watchers.
In other recent news, Gambling.com Group Ltd. has reported fourth-quarter 2024 earnings that surpassed both BTIG’s and consensus estimates, highlighting a strong performance in the iGaming sector. BTIG analysts maintained a Buy rating with a $19 price target, emphasizing the company’s successful market share gains and the potential growth from the acquisition of OddsJam. Benchmark also maintained a Buy rating, raising its price target to $18, citing the company’s record revenue and profitability, as well as its strategic focus on international expansion and acquisitions like Freebets.com and Odds Holdings.
Truist Securities increased its price target for Gambling.com to $18, following the acquisition of Odds Holdings, which is expected to enhance the company’s EBITDA by 20% in 2025 and potentially double it by 2026. Craig-Hallum echoed this sentiment, raising their target to $18 and praising the strategic and accretive nature of the Odds Holdings acquisition. The integration of Odds Holdings is anticipated to be smooth, with significant synergies expected across various areas, including international expansion and shared technology.
The company’s revenue growth rate of over 20% and high EBITDA margins, expected to reach close to 50% in 2024, have been noted as factors contributing to its financial stability. Analysts from various firms have expressed confidence in Gambling.com’s strategic execution and future earnings potential, with a focus on the expanding online gambling market and regulatory changes in the U.S. Investors are advised to watch for new developments in the company’s recent acquisitions and regulatory changes that could impact its operations.
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