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Investing.com - JMP Securities has reiterated its Market Outperform rating for Inspired Entertainment Inc (NASDAQ:INSE), maintaining a $12.00 price target on the virtual sports and gaming technology provider. The stock, currently trading at $9.34, appears undervalued according to InvestingPro analysis, with impressive gross profit margins of nearly 70%.
The firm highlighted Inspired Entertainment’s dominant position in the U.S. virtual sports space, noting the company holds over 80% market share and has established operations at retail locations across the country for years. With a market capitalization of $251 million and a notably low P/E ratio of 3.75x, the company has demonstrated strong financial performance, earning a GREAT overall financial health score from InvestingPro.
JMP pointed to Inspired’s successful transition to online gaming through several key partnerships, along with its diverse portfolio of virtual sports offerings including football, basketball, soccer, horses, dogs, motor racing, and marble racing simulations.
The research note outlined three potential avenues for virtual sports legalization in the U.S.: through sports betting expansion, iGaming legislation, or through Keno games, which JMP compared to lottery products based on randomly generated numbers.
Inspired Entertainment provides gaming solutions across multiple channels including land-based venues, mobile platforms, and online operations in regulated markets globally.
In other recent news, Inspired Entertainment has finalized a private placement of £270 million in senior secured notes due 2030 and established a new £17.8 million revolving credit facility. This financing aims to refinance existing debt and support general corporate functions. Additionally, Inspired Entertainment has expanded its presence in Brazil by launching its V-Play Football Brazil, in partnership with Kaizen Gaming, offering a virtual sports experience with official sponsorship from the Brasileirão Betano. On the business development front, BetMGM has become the first U.S. operator to introduce Inspired Entertainment’s Hybrid Dealer Roulette 4-Ball Extra Bet game under a three-month exclusive agreement. Analyst activity has been notable, with JMP Securities reiterating its Market Outperform rating for Inspired Entertainment, maintaining a price target of $12.00. Meanwhile, BWS Financial initiated coverage with a Buy rating and a $20.00 price target, highlighting the company’s innovations in the online gambling industry. These developments reflect Inspired Entertainment’s strategic moves in financing, product offerings, and market positioning.
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