SGHC stock price target raised to $15 by Canaccord on strong Q2 results

Investing.com - Canaccord Genuity raised its price target on SGHC Limited (NYSE:SGHC) to $15.00 from $14.00 on Wednesday, while maintaining a Buy rating on the stock. The company’s stock has shown remarkable momentum, delivering a 274% return over the past year and trading near its 52-week high of $11.44.

The price target increase follows Super Group’s Tuesday announcement of strong Q2 results, an improved FY25 outlook, and plans to exit the US iGaming market. The company reported record revenue and adjusted EBITDA, with broad-based strength across its sports betting and iGaming platforms. According to InvestingPro data, the company has demonstrated robust growth with revenue increasing 31.3% in the last twelve months, supported by healthy financials and strong cash flows.

Super Group will provide more detailed Q2 results in early August, but has already raised its full-year 2025 guidance based on strong first-half performance. The decision to exit the US iGaming market comes after a comprehensive review of capital allocation priorities.

This move follows Super Group’s exit from the US sports betting market in July 2024, which Canaccord notes has allowed investors to focus on the strong performance of the company’s global business. The firm believes this latest decision further simplifies SGHC’s business model.

Canaccord cited SGHC’s consistently strong top and bottom-line growth, expanding track record of execution, and conservative approach to guidance as factors supporting its valuation assessment. The firm also identified the upcoming Investor Day as a potential catalyst for the stock.

In other recent news, Super Group announced record-breaking second-quarter 2025 results, with revenue surpassing the $533 million mark set in the last quarter of 2024. The company also raised its full-year 2025 guidance, forecasting ex-U.S. revenue to exceed $2.0 billion and adjusted EBITDA to surpass $480 million. This comes as Super Group plans to exit the U.S. iGaming market due to recent regulatory developments and capital allocation considerations. In response to these strong results, BTIG raised its stock price target for Super Group to $13, maintaining a Buy rating. Craig-Hallum also initiated coverage with a Buy rating and set a $12 price target, highlighting Super Group’s strategic focus on profitable markets like Africa. Additionally, Super Group shareholders approved all resolutions at the 2025 Annual Meeting, including the reappointment of board members and authorizations for share repurchases. These developments underscore Super Group’s strategic adjustments and positive outlook in the global online gambling market.

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