SGHC stock price target raised to $14 by BTIG on strong Q2 results

Investing.com - BTIG has raised its price target on SGHC Limited (NYSE:SGHC) to $14.00 from $13.00 while maintaining a Buy rating following the company’s second-quarter results that exceeded expectations. The company’s stock has shown remarkable momentum, delivering a 74.91% return year-to-date. According to InvestingPro data, SGHC maintains a strong financial health score, with more cash than debt on its balance sheet.

Super Group published second-quarter results on Thursday that surpassed both BTIG’s and consensus estimates for Revenue and EBITDA. The primary driver of outperformance was stronger Ex-US Online Casino (EPA:CASP) revenue growth of approximately 28%, which topped BTIG’s mid-teens estimate. This performance aligns with the company’s impressive revenue growth of 31.3% and healthy gross profit margin of 50.41%.

The FIFA Club World Cup outperformed management expectations during the quarter, though sports results came in slightly below BTIG’s projections, with second-quarter sports growing 28% year-over-year versus the firm’s estimate of 32% year-over-year growth.

BTIG has adjusted its estimates to reflect a higher second-quarter baseline and steady sequential growth in the Casino business, while tempering 2026 estimates to reflect more modest growth against a higher base for the Sports business as World Cup 2026 will be compared against the Club World Cup.

The firm sees multiple catalysts supporting strong growth through 2026, including product development, the FIFA World Cup, and the roll-out of Jackpot City Casino to new markets such as Ghana, Zambia, Nigeria, and Botswana, with product improvement being a key focus area as management rated their existing product as a 6 or 7 out of 10 in markets outside of Africa.

In other recent news, Super Group reported record-breaking quarterly revenue and adjusted EBITDA, surpassing market expectations. Canaccord Genuity responded by raising its price target for the company to $17.00, maintaining a Buy rating. Benchmark also increased its price target to $14.00, citing the company’s robust performance across its sportsbook and casino verticals. BTIG followed suit, raising its price target to $13.00 after Super Group’s announcement of its strongest quarter in history, with revenue exceeding $533 million. Canaccord had previously raised its target to $15.00, highlighting an improved fiscal year 2025 outlook and the company’s decision to exit the US iGaming market. JMP Securities initiated coverage with a Market Outperform rating and a $15.00 price target, recognizing Super Group’s growth potential in the online gambling sector. These developments reflect strong analyst confidence in Super Group’s recent performance and future prospects.

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