JMP maintains Bragg Gaming stock with $6 target

Published 16/05/2025, 09:52
JMP maintains Bragg Gaming stock with $6 target

On Friday, JMP analysts reiterated their Market Outperform rating and $6.00 price target for Bragg Gaming Group Inc. (NASDAQ:BRAG), currently trading at $4.53. The endorsement comes after the company’s first-quarter earnings for 2025. The analysts believe that the current trading price does not reflect the company’s true value, citing a discrepancy with the industry standard. This view aligns with InvestingPro analysis, which indicates the stock is currently undervalued, supported by the company’s impressive 47% price return over the past six months.

According to JMP, Bragg Gaming’s shares are trading at a multiple of 4.4 times the consensus 2026 estimated EBITDA, which is lower than the international online gaming industry average of 6.0 times. The $6.00 price target set by JMP is based on a 6.3 times multiple of their anticipated 2026 EBITDA and a 12 times multiple of their forecasted 2026 free cash flow (FCF). With a current market cap of $115.6 million and a solid gross profit margin of 54.4%, InvestingPro data reveals the company maintains good financial health with a score of 2.6 out of 5.

The analysts have made slight adjustments to their EBITDA estimates for the years 2025 and 2026. The new estimates are €19.1 million for 2025 and €20.8 million for 2026, which represent a minor decrease from their previous projections of €19.2 million for 2025 and €21.6 million for 2026.

The reiteration of the Market Outperform rating and price target reflects JMP’s continued confidence in Bragg Gaming’s growth prospects. The analysts’ commentary suggests they see the current market price as an undervaluation of the company’s potential earnings and cash flow capabilities in the coming years.

Bragg Gaming Group Inc. is a company specializing in the online gaming sector, providing software solutions and other services to the industry. The firm’s financial performance and future projections are closely monitored by investors and analysts alike, with JMP’s latest analysis contributing to the ongoing evaluation of the company’s stock. For deeper insights into Bragg Gaming’s valuation, growth metrics, and comprehensive financial analysis, investors can access the detailed Pro Research Report available exclusively on InvestingPro.

In other recent news, Bragg Gaming Group reported quarterly revenue of €27 million, slightly below consensus estimates, but its EBITDA of €4.7 million surpassed expectations, driven by a robust 17% margin. The company’s proprietary content segment experienced a notable 45% year-over-year growth, contributing to a significant increase in gross margins to 58%. In a strategic move, Bragg Gaming repaid $5 million of its $7 million promissory note and extended the remaining $2 million until June 2025, aiming to bolster its financial standing. Additionally, the company is negotiating a new revolving credit facility to secure better terms and lower borrowing costs.

The appointment of Holly Gagnon as Chair of Bragg’s Board of Directors marks a leadership change, with her extensive industry experience expected to drive future growth initiatives. Analysts at Benchmark maintained a Speculative Buy rating with a $6.00 price target, citing Bragg’s strategic expansion in Brazil as a potential revenue booster. JMP Securities also increased its price target for Bragg to $6.00, highlighting the company’s strong margins and earnings performance. Bragg’s collaboration with major U.S. operators and its focus on high-margin revenue streams are anticipated to enhance profitability and shareholder value.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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