Super Group stock price target raised to $18 from $16 at Benchmark

Investing.com - Benchmark raised its price target on SGHC Limited (NYSE:SGHC) to $18.00 from $16.00 on Thursday, while maintaining a Buy rating on the stock. The company’s shares, currently trading at $12.62, have delivered an impressive 267% return over the past year, according to InvestingPro data.

The price target increase comes after Super Group delivered what Benchmark described as a "powerful update" ahead of its Investor Day in London, where the company raised its full-year 2025 guidance above consensus expectations. The company’s strong financial health is reflected in its 37% revenue growth and robust 49% gross margin.

Super Group also provided its first medium-term financial targets through 2028, which Benchmark noted underscores the strength of the company’s international model and its ability to translate customer engagement into accelerating profitability.

The revised guidance is reportedly not only above consensus but also significantly ahead of Benchmark StoneX estimates, positioning SGHC as one of the most attractive ideas in the firm’s coverage.

Benchmark applied a 15x multiple to normalized FY25/FY26 AEBITDA to arrive at the new price target and continues to highlight SGHC as a "Best Idea."

In other recent news, Super Group announced an increase in its full-year 2025 financial guidance following a robust third-quarter performance. The company now anticipates group revenue between $2.125 billion and $2.200 billion, up from its prior forecast of over $2.04 billion. Additionally, Super Group has raised its Group Adjusted EBITDA guidance to between $550 million and $560 million, compared to the previous range of $470 million to $480 million. This positive outlook follows the company’s strong second-quarter results, which surpassed both BTIG’s and consensus estimates for revenue and EBITDA. Analysts from BTIG noted that the primary driver was a 28% growth in Ex-US Online Casino revenue. Several firms have adjusted their price targets for SGHC Limited, with Craig-Hallum raising it to $18, Benchmark to $16, and Canaccord Genuity to $17, all maintaining a Buy rating. These adjustments reflect SGHC’s strategic decisions and recent financial performance. Craig-Hallum highlighted the company’s exit from uneconomic markets and investments in structurally advantaged areas as factors contributing to its improved performance.

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