Benchmark raises Super Group stock price target to $14 on record quarter

Published 09/07/2025, 14:04
Benchmark raises Super Group stock price target to $14 on record quarter

Investing.com - Benchmark raised its price target on SGHC Limited (NYSE:SGHC) to $14.00 from $12.00 on Wednesday, while maintaining a Buy rating on the stock. The company, with a market capitalization of $5.7 billion, has demonstrated strong financial performance with revenue growth of 31.3% in the last twelve months.

The increase follows Super Group’s announcement that it expects the second quarter of 2025 to be the strongest in company history, driven by robust performance across its sportsbook and casino verticals.

Super Group has raised its full-year 2025 guidance for both revenue and Adjusted EBITDA, citing strong engagement, pricing optimization, and operational execution across its core international markets.

The company also revealed plans to exit the U.S. iGaming market due to unfavorable regulatory developments and substandard return potential, including New Jersey’s recent increase in online gaming taxes to 19.75% on gross gaming revenue.

Benchmark noted that management’s decision to exit the U.S. market was appropriate given the significant headwinds faced by sub-scale operators, demonstrating a focus on maximizing shareholder value by avoiding markets where regulatory constraints prevent efficient growth.

In other recent news, Super Group announced record-breaking second-quarter 2025 results, prompting an increase in its full-year guidance. The company reported revenue surpassing $533 million and an estimated EBITDA of around $140 million for the quarter. Super Group has decided to exit the U.S. iGaming market following a review of capital allocation priorities, anticipating cost savings starting in 2026. Analysts at Canaccord Genuity and BTIG responded positively to these developments, raising their price targets to $15 and $13, respectively, while maintaining Buy ratings. Both firms highlighted the company’s strong global performance and the potential for further growth. Super Group also announced that its ex-U.S. revenue is expected to exceed $2.0 billion, up from previous estimates. At the company’s 2025 Annual Meeting of Shareholders, all resolutions were approved, including the reappointment of board members and authorization for share repurchases. Additionally, the company plans to provide a detailed second-quarter update in August, with an Investor Day scheduled for September 18, 2025, in London.

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