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Investing.com - Stifel has reduced its price target on Gambling.com Group Ltd. (NASDAQ:GAMB) to $12.00 from $15.00 while maintaining a Buy rating on the stock. Currently trading at $5.25, GAMB has fallen significantly from its 52-week high of $17.14, with InvestingPro data showing the stock is now trading at undervalued levels.
The adjustment follows Gambling.com’s third-quarter adjusted EBITDA results, which missed analyst expectations by 5%, and the company’s reduction of its fiscal year 2025 adjusted EBITDA guidance by 8% at the midpoint. Despite these challenges, the company maintains an impressive 93.17% gross profit margin according to InvestingPro data.
The lowered guidance primarily reflects ongoing challenges from a Google algorithm update in early Q3 that continues to affect the company’s search rankings, according to Stifel’s analysis.
Stifel notes that despite these challenges and the stock already being down 59% from its year-to-date highs, it still sees Gambling.com as a "compelling deep value trade" at current levels, with shares valuing the company’s Marketing business at less than 2x EBITDA.
The firm has reduced its FY25 and FY26 adjusted EBITDA estimates by 8% each in response to these developments. For deeper insights into GAMB’s valuation and 13 more ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Gambling.com Group Ltd reported its third-quarter 2025 earnings, which featured a significant earnings per share (EPS) beat. The company achieved an EPS of $0.26, exceeding the expected $0.17 by 52.94%. Despite this, Gambling.com did not meet revenue forecasts, reporting $38.98 million compared to the anticipated $41.25 million, a shortfall of 5.5%. Additionally, Texas Capital Securities adjusted its price target for Gambling.com, reducing it from $14.00 to $9.00 while maintaining a Buy rating. This adjustment was influenced by the company’s third-quarter performance, which fell short of consensus estimates for both revenue and EBITDA. Furthermore, Gambling.com has revised its 2025 EBITDA guidance downward for the second time this year. These developments highlight the mixed financial results and adjustments in expectations for the company.
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