SGHC stock rating reiterated at Buy by Benchmark on profitability outlook

Published 13/10/2025, 14:06
SGHC stock rating reiterated at Buy by Benchmark on profitability outlook

Investing.com - Benchmark reiterated its Buy rating and $18.00 price target on SGHC Limited (NYSE:SGHC) on Monday, citing the company’s growing momentum and improved profitability outlook. The target represents significant upside from the current price of $12.99, with analyst targets ranging from $15 to $19. According to InvestingPro data, SGHC has delivered an impressive 235.91% return over the past year.

The research firm highlighted SGHC’s recent upward revision to its full-year ex-U.S. guidance, which now projects revenue of $2.085-$2.160 billion and AEBITDA of $575-$585 million, implying a midpoint margin of 27.3%.

This guidance upgrade reflects strong execution, disciplined expense control, and continued outperformance in Africa, which now contributes approximately 40% of SGHC’s total revenue.

At its September Investor Day, SGHC unveiled new medium-term financial targets, projecting revenue of $2.6-$3.0 billion and AEBITDA of $700-$930 million by 2028.

These targets translate to 8-18% compound annual AEBITDA growth and margin expansion to 27-31% over the period, strengthening the company’s long-term profitability outlook.

In other recent news, SGHC Limited has seen a series of positive developments. Benchmark reiterated its Buy rating on the company, emphasizing strong performance in African markets, which account for about 40% of the group’s net revenue and influence its 2025 guidance. BTIG also raised its price target for SGHC to $19, maintaining a Buy rating, and noted improved fundamentals after the closure of its US sportsbook and iGaming operations. Citizens JMP increased its price target to $16, citing a growth outlook supported by estimates for 2027 EBITDA and free cash flow. Canaccord Genuity raised its price target to $18, maintaining a Buy rating, following SGHC’s Investor Day, which highlighted significant growth initiatives. Benchmark also increased its price target to $18, noting a robust update from SGHC that exceeded consensus expectations for 2025 guidance. These recent developments reflect a broad confidence among analysts in SGHC’s growth prospects.

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