Bragg Gaming stock target lifted to $6 by Benchmark

On Thursday, Benchmark raised the price target on Bragg Gaming Group Inc. (NASDAQ: BRAG), a $120 million market cap gaming technology company, to $6.00 from the previous $4.00, maintaining a Speculative Buy rating on the stock. The adjustment followed Bragg Gaming’s release of preliminary results for 2024, which showed consistent growth with revenue increasing by 4.6% and maintaining a healthy gross margin of 51.2%.

The company’s performance has been attributed to its strategic focus on developing proprietary and exclusive content. According to InvestingPro analysis, the stock currently appears undervalued based on its Fair Value model. Bragg Gaming has provided an ambitious outlook for 2025, forecasting double-digit growth, with expected increased market penetration in Brazil, the United States, and key European markets.

Bragg Gaming’s management emphasized the significance of delivering higher-margin content and the expansion of operator partnerships. InvestingPro data reveals that while the company has shown significant returns over the last week and month, analysts do not anticipate profitability this year. Additionally, they pointed to ongoing technological innovations as fundamental to the company’s growth. These factors are seen as pivotal in securing Bragg Gaming’s position in the competitive iGaming industry.

The company’s strategic initiatives are designed to adapt to the evolving demands of the iGaming landscape. With the global market for online gaming continuing to expand, Bragg Gaming’s emphasis on exclusive content and market expansion is expected to support its growth trajectory in the coming year.

Investors responded to the news with optimism, as the raised price target suggests that Bragg Gaming is well-positioned to capitalize on the opportunities within the iGaming sector. For deeper insights into Bragg Gaming’s financial health and growth potential, investors can access comprehensive analysis and additional ProTips through InvestingPro. The company’s focus on high-margin offerings and technological advancements are set to play a crucial role in its performance moving forward.

In other recent news, Bragg Gaming Group has announced its preliminary unaudited results for 2024 and provided financial guidance for 2025. The company expects a revenue increase of at least 9% for 2024, reaching EUR 102 million. For 2025, Bragg Gaming anticipates revenue to be in the range of EUR 117.5 million to EUR 123.0 million, signaling double-digit growth. The company has also forged a technology platform and game development partnership with Caesars (NASDAQ:CZR) Entertainment, targeting the U.S. and Canada markets. This partnership is expected to drive double-digit growth in Bragg’s revenue and profitability in 2025.

In terms of analyst upgrades or downgrades, financial analysis firm, Benchmark, adjusted their stock price target for Bragg Gaming from $8.00 to $4.00, while maintaining a Speculative Buy rating. JMP Securities, on the other hand, has maintained the Bragg Gaming stock with a $5 target.

In other company news, the management team of Bragg Gaming has shown confidence in the company’s value through significant insider share purchases. These recent developments reflect Bragg Gaming Group’s focus on key markets in the U.S., Canada, Latin America, and Europe, and its plans for expansion into emerging markets.

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