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Investing.com - BTIG has reduced its price target on Gambling.com Group Ltd. (NASDAQ:GAMB) to $12.00 from $19.00 while maintaining a Buy rating, citing pressure on the company’s core search business. According to InvestingPro data, the stock has declined 38% over the past six months, though analysts maintain high conviction with targets ranging from $17 to $20, suggesting significant upside potential.
The revision follows Gambling.com’s second-quarter results, which BTIG described as "generally in line" with expectations. Despite this, the company’s guidance was effectively reduced on a like-for-like basis due to challenges in its search business, though absolute revenue guidance was raised slightly to account for merger and acquisition activity, favorable foreign exchange conditions, and improved subscription performance. InvestingPro analysis shows the company maintains impressive gross profit margins of 94.55% and trades at an attractive P/E ratio of 10.86x, suggesting potential value opportunity. For deeper insights into GAMB’s valuation metrics and 10+ additional ProTips, consider exploring InvestingPro’s comprehensive research report.
BTIG lowered its 2026 and 2027 estimates to reflect a more conservative organic growth outlook for the marketing business, attributing this to search headwinds and Gambling.com’s strategic pivot toward new channels and monetization models. The company expects these new channels to eventually compensate for search-related revenue gaps while maintaining margins in the 35-40% range.
The price target reduction reflects both a 10% decrease in BTIG’s 2026 EBITDA forecast from $77 million to $70 million and a multiple reduction from 10x to 7.5x, representing a 25-40% discount compared to 2025-2028 revenue and EBITDA compound annual growth rate expectations.
BTIG anticipates market uncertainty will weigh on Gambling.com’s valuation during this transition, suggesting it may take several quarters for investors to regain confidence in the company’s earnings trajectory, with core operations now projected to grow approximately 6% in 2026 and 7-8% in 2027-2028. Despite near-term challenges, InvestingPro data indicates strong financial health with an overall score of "GREAT" and robust revenue growth of 24.67% over the last twelve months.
In other recent news, Gambling.com Group Ltd reported its Q2 2025 earnings, significantly surpassing expectations. The company achieved an earnings per share (EPS) of $0.37, well above the forecasted $0.17, representing a 117.65% surprise. Revenue for the quarter reached $39.6 million, slightly exceeding the anticipated $38.92 million. Following these results, Jefferies adjusted its price target for Gambling.com from $18 to $15, while maintaining a Buy rating. This adjustment reflects Jefferies’ updated financial projections, which include slight modifications to revenue and adjusted EBITDA estimates. These developments highlight recent changes and projections for Gambling.com Group Ltd.
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