Super Group stock price target raised to $13 by BTIG on strong Q2 results

Investing.com - BTIG has raised its price target on SGHC Limited (NYSE:SGHC) to $13.00 from $11.00 while maintaining a Buy rating following the company’s pre-announcement of stronger-than-expected second-quarter 2025 results. The stock has demonstrated remarkable momentum, with a 279% return over the past year and is currently trading near its 52-week high of $11.41.

Super Group announced that Q2 2025 was "the strongest quarter in the company’s history," with revenue exceeding the $533 million benchmark set in Q4 2024. Based on similar incremental margins compared to previous quarters, BTIG estimates EBITDA came in around $140 million for the quarter. InvestingPro data shows the company maintains strong fundamentals, with a healthy 50.4% gross profit margin and robust cash flows to cover its debt obligations.

The company also increased its full-year 2025 guidance and announced plans to discontinue its U.S. iGaming operations. BTIG had previously raised its estimates above street consensus to reflect event-related tailwinds, including the initial FIFA Club World Cup in June/July 2025 and an expanded World Cup in summer 2026. According to InvestingPro, which offers comprehensive analysis of over 1,400 US stocks, SGHC shows promising growth potential with a projected 38% revenue increase for FY2025.

BTIG believes there could be additional upside beyond Q2 if Super Group successfully retains and engages Club World Cup active users into domestic league seasons, such as the English Premier League, which begins on August 15. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading near its fair value, with strong momentum indicators suggesting continued positive performance.

The firm noted that Super Group’s sports business appears stronger than initially believed, prompting the upward revision in estimates and price target, with BTIG hosting a non-deal roadshow with company management on July 9 and July 10.

In other recent news, Super Group announced a strong outlook for its financial performance, raising its 2025 guidance for ex-U.S. revenue to exceed $2.0 billion and adjusted EBITDA to surpass $480 million. This comes as the company plans to exit the U.S. iGaming market, citing regulatory developments and a focus on more profitable markets. Super Group also reported that shareholders approved all resolutions at its 2025 Annual Meeting, including the reappointment of board members and authorization for share repurchases.

Additionally, BTIG raised its price target for Super Group to $11, citing a positive outlook for the company’s Sportsbook business and a shift in presentation currency. Craig-Hallum initiated coverage with a Buy rating and a $12 price target, highlighting the company’s strategic moves and strong fundamentals in core markets. Benchmark maintained a Buy rating and a $12 target, praising Super Group’s first-quarter performance and operational efficiency.

These developments reflect a series of strategic decisions and positive analyst assessments, underscoring Super Group’s focus on growth and profitability in key international markets.

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