Super Group stock price target raised to $17 from $15 at Canaccord

Investing.com - Canaccord Genuity raised its price target on SGHC Limited (NYSE:SGHC) to $17.00 from $15.00 on Thursday, while maintaining a Buy rating on the stock following the company’s strong second-quarter results. The gaming company, currently valued at $5.4 billion, has demonstrated remarkable momentum with a 262% return over the past year. According to InvestingPro analysis, SGHC maintains a "GREAT" financial health score, supported by strong cash flows and minimal debt.

Super Group reported record quarterly revenue and adjusted EBITDA that exceeded market expectations, according to Canaccord. The company had previously issued preliminary results last month that had already heightened expectations. InvestingPro data reveals impressive revenue growth of 31.3% over the last twelve months, with a healthy gross profit margin of 50.4%.

The gaming company maintained its fiscal year 2025 revenue outlook that was raised with the preliminary disclosures, but increased its profitability guidance based on recent positive trends. Canaccord noted that operating momentum in key growth markets across Africa and Europe has continued in recent months.

SGHC shares have gained more than 130% since the company announced the closure of its US sports betting platform in July 2024. The firm’s decision to exit the US iGaming market will allow for greater focus on its global operations, where it has shown consistent strength.

Super Group plans to hold an Investor Day in September, where it will provide additional details about its operating strategy and mid-term financial targets. Investors seeking deeper insights can access SGHC’s comprehensive Pro Research Report, along with 7 additional exclusive ProTips, through an InvestingPro subscription.

In other recent news, Super Group has announced record-breaking second-quarter results for 2025, prompting the company to raise its full-year guidance. The company now expects ex-U.S. revenue to exceed $2.0 billion, up from the earlier projection of $1.925 billion, and adjusted EBITDA to surpass $480 million, an increase from the previous forecast of $457 million. Super Group also revealed plans to exit the U.S. iGaming market, focusing on its operations elsewhere. Following these developments, Canaccord Genuity raised its price target for Super Group to $15, maintaining a Buy rating due to the strong Q2 results and improved fiscal outlook. Similarly, Benchmark increased its price target to $14, citing the anticipated record performance in the second quarter. BTIG also raised its price target to $13, noting the company’s stronger-than-expected Q2 results, with revenue exceeding $533 million and estimated EBITDA around $140 million. JMP Securities initiated coverage of Super Group with a Market Outperform rating, highlighting its growth potential in the online gambling space. These updates reflect the company’s robust performance and strategic adjustments in recent times.

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