Benchmark reaffirms buy rating on Gambling.com stock amid prediction market potential

Benchmark maintained its Buy rating and $18.00 price target on Gambling.com Group Ltd. (NASDAQ:GAMB) Monday, citing the company’s potential to benefit from federally regulated prediction markets. According to InvestingPro data, GAMB appears undervalued, with analyst targets ranging from $17 to $20, supported by impressive gross profit margins of 94.55%.

The research firm believes prediction markets could serve as a catalyst for legislative momentum in U.S. gaming policy, potentially accelerating online sports betting legalization in states where it remains prohibited.

Benchmark noted that operators like Kalshi, and possibly DraftKings (NASDAQ:DKNG) and Flutter (NYSE:FLUT), will compete for market share in this emerging vertical, which could influence policymakers as betting-style products appear in non-sportsbook states.

The firm also highlighted how the zero-tax structure of prediction markets might discourage excessive state-level gaming tax increases, potentially reducing regulatory challenges for existing operators in the space.

Gambling.com could see "outsized upside" if these developments lead to broader iGaming adoption, Benchmark suggested, noting that approximately half the U.S. population already has access to online sports betting while the remainder could be reached through CFTC-regulated prediction markets. The company’s strong financial health score of "GREAT" on InvestingPro and robust revenue growth of 24.67% support this optimistic outlook.

In other recent news, Gambling.com Group reported impressive first-quarter 2025 financial results, with revenues reaching a record $40.6 million, slightly surpassing estimates. The company also posted an adjusted EBITDA of $15.9 million, marking a 56% increase from the previous year. Notably, the company’s sports data services revenue surged by 405% to $9.9 million, largely due to the acquisition of OddsJam and OpticOdds. Analysts from Benchmark and Stifel maintained their Buy ratings on the company, each with a price target of $18.00, highlighting the company’s resilient performance and strategic revenue mix. Macquarie also maintained an Outperform rating, albeit reducing its price target to $18.00 from $19.00, following the robust earnings report. Texas Capital initiated coverage with a Buy rating and a $17.00 price target, noting Gambling.com’s strong position in the online wagering industry. The company’s management reiterated its full-year 2025 guidance, projecting revenue between $170 million and $174 million, and adjusted EBITDA of $67 million to $69 million. These developments underscore Gambling.com’s strategic shift towards a blend of marketing and sports data services, contributing to its growth trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.