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Investing.com -- Bernstein has initiated coverage on Cirsa Enterprises (BME:CIRSA) with an “outperform” rating and a price target of €20.20, representing a 32% upside from the company’s August 28 close at €15.35, in a note dated Monday.
The analysts described Cirsa as a “gold mine for value creation,” citing its leadership in regulated gaming markets and its strong mix of casinos, slot machines, and online operations across Spain, Italy and Latin America.
The brokerage’s financial projections point to steady growth. Revenues are forecast to rise from €2.15 billion in 2024 to €2.31 billion in 2025 and €2.50 billion in 2026, with year-over-year growth rates of 8%, 7.2% and 8.4%.
EBITDA is expected to climb from €699 million in 2024 to €827 million in 2026, implying growth of 11%, 6.9% and 10.7% across the same period.
Adjusted earnings per share are projected at €0.84 in 2024, €1.36 in 2025 and €1.71 in 2026.
On valuation, Bernstein estimates Cirsa trading at an adjusted price-to-earnings ratio of 18.2x in 2024, falling to 11.3x in 2025 and 9.0x in 2026.
The brokerage’s models show the enterprise value-to-EBITDA multiple easing from 7.1x in 2024 to 6x by 2026. EV/EBIT is forecast to move from 14.9x to 12.3x over the same period.
The brokerage also noted Cirsa’s current market capitalization of €2.57 billion and enterprise value of €4.98 billion.
Shares have traded between €13.64 and €16 over the past year, with a one-month gain of 7.4% and a year-to-date increase of 22.3% in the Bloomberg Europe Developed Markets Large & Mid Cap Price Return Index.
Bernstein said Cirsa’s omnichannel strategy, disciplined expansion, and strong cash conversion underpin the outlook.
The analysts added that the company’s diversified footprint in regulated markets provides resilience against regulatory shifts and supports sustained earnings growth.