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Investing.com - Freedom Capital Markets initiated coverage on DoubleDown Interactive Co Ltd. (NASDAQ:DDI) with a Buy rating and a $16.00 price target on Monday. The stock currently trades at $8.90, with InvestingPro analysis suggesting the company is undervalued.
The research firm views the mobile game publisher’s risk/reward profile as favorable, citing DoubleDown’s history of strong execution and potential for meaningful future growth, including through mergers and acquisitions. This view aligns with DDI’s impressive 70.87% gross profit margin and strong financial health score rated as "GREAT" by InvestingPro.
Freedom Capital Markets’ price target reflects approximately 0.90x enterprise value-to-revenue multiple applied to its fiscal year 2027 revenue estimate of $430 million for the company.
The firm highlighted that DoubleDown Interactive operates as a mobile game publisher with a growing iGaming (online gambling) business segment.
Freedom Capital Markets noted that DoubleDown currently has an enterprise value of approximately $30 million, suggesting significant upside potential according to their analysis.
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