Bragg Gaming shares hold as Benchmark reiterates $6 target

Published 21/03/2025, 14:56
Bragg Gaming shares hold as Benchmark reiterates $6 target

On Friday, Benchmark analysts maintained a Speculative Buy rating for Bragg Gaming Group Inc. (NASDAQ:BRAG) with a steady price target of $6.00. Currently trading at $4.28, InvestingPro analysis suggests the stock is undervalued, with analysts setting targets between $6.00 and $11.00. The firm’s analysts highlighted Bragg Gaming Group’s entry into 2025, propelled by a record increase in revenue (9.07% growth in the last twelve months), an expansion of high-margin proprietary content, and growing market presence in strategic regions.

Bragg Gaming Group’s pivot towards exclusive content and the implementation of AI-driven platform improvements are anticipated to bolster profitability and foster ongoing AEBITDA growth. While InvestingPro data shows the company isn’t currently profitable, analysts forecast positive earnings in 2025. The company is experiencing significant growth in North America and Brazil, with these markets expected to contribute approximately 25% of Bragg’s total revenue by the end of the year. InvestingPro subscribers have access to 6 additional key insights about BRAG’s financial health and growth prospects.

The collaboration with major U.S. operators such as Caesars (NASDAQ:CZR), DraftKings (NASDAQ:DKNG), and Fanatics is set to strengthen Bragg’s position in the market. Additionally, the rapidly evolving iGaming sector in Brazil is seen as a substantial opportunity for long-term growth. Bragg Gaming Group’s financial stability is underscored by consistent cash flow, which supports continued investment in technology, content development, and expansion into new markets.

Bragg’s strategic emphasis on higher-margin revenue streams, regulatory expansion, and operational efficiencies is poised to improve overall profitability and enhance shareholder value. This strategic direction is expected to solidify Bragg’s market standing and contribute to its financial performance.

In other recent news, Bragg Gaming Group reported quarterly revenue of €27 million, slightly below consensus estimates, while its EBITDA of €4.7 million surpassed expectations. The company has projected a revenue increase of at least 9% for 2024, reaching €102 million, with adjusted EBITDA expected to grow by 1%. Looking ahead to 2025, Bragg Gaming forecasts revenue to be between €117.5 million and €123.0 million, indicating double-digit growth from 2024. Analysts at JMP Securities and Benchmark have both raised their price targets for Bragg Gaming to $6.00, reflecting confidence in the company’s strategic direction and financial performance. Bragg Gaming has also announced an exclusive technology platform partnership with Caesars Entertainment, targeting the U.S. and Canadian markets. This partnership is anticipated to drive double-digit growth in revenue and profitability, focusing on North America. The company continues to expand its proprietary and exclusive content, which is expected to enhance profitability and reduce reliance on third-party content. Bragg Gaming’s strategic initiatives include increasing game title releases and enhancing market penetration in key regions such as North America and Brazil.

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