BRAG - Bragg Gaming: Strategic Alternative Review Underlines Potential In Underlying Value

2024-04-01 10:22:27 ET

Summary

• Bragg Gaming reported Q4 results with a revenue decrease of -1.4% YoY, missing analysts' estimates due to a single customer's change in commercial terms.
• The company still expects good growth in 2024, but the adjusted EBITDA guidance likely doesn't anticipate operating leverage that I believe to drive the long-term investment case.
• Bragg has now formed a special committee to review strategic alternatives, sparking hopes for potential transactions revealing underlying shareholder value.
• The long-term story in my opinion still stands strong, and the current price reflects a good risk-to-reward, especially with strategic alternatives being looked at.

Bragg Gaming ( BRAG ) recently reported the company’s Q4 results. The stock didn’t react very significantly with pre-announced Q4 results, but has since jumped significantly with the reported 2024 outlook and the confirmed review of strategic alternatives for the company, sparking hopes for investors to realize Bragg’s underlying value....

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