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Investing.com - BTIG initiated coverage on Cirsa Enterprises SA (CIRSA:SM) with a Buy rating and a price target of EUR19.00 on Monday.
The global gambling company operates both offline (approximately 80% of total revenue) and online operations across Spain, Italy, and several Central/Latin American countries including Panama, Colombia, Mexico, and Peru. Founded in the late 1970s, Cirsa has expanded through gradual roll-up and development of fragmented local markets, a process accelerated after Blackstone’s acquisition in 2018.
BTIG expects Cirsa to achieve mid-single-digit offline growth and mid-teens online growth, resulting in multi-year top-line and EBITDA growth in the mid-to-high single-digit range. The firm notes that Cirsa currently trades at a discount to that compound annual growth rate, which it considers punitive given the company’s growth levers and market dynamics.
In most territories, Cirsa holds market leader status and possesses natural consolidator advantages due to its scale and the highly fragmented competitive landscape, according to BTIG’s analysis.
BTIG’s financial projections align with Cirsa’s 2025 guidance and are indexed to the lower end of the company’s medium-term growth and margin improvement targets, suggesting potential for positive revisions, multiple expansion, and share price appreciation if management successfully executes its growth strategy.
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