GAMB - Gambling.com gains after Macquarie initiates coverage with a Buy rating

2023-06-28 12:45:05 ET

Macquarie started off coverage on Gambling.com ( NASDAQ: GAMB ) with an Outperform rating on its that view the stock will be boosted by strong industry tailwinds and the superior partnerships the company has struck.

Analyst Chad Beynon and his team noted that even with the affiliate sector fragmented, Gambling.com ( GAMB ) has emerged as a leader in North America given its unique offering, media assets, and partnerships. Looking ahead, Macquarie forecasts a three-year revenue CAGR of 22%, three-year EBITDA CAGR of 32%, and three-year EPS of 34%. Of note, those projections for revenue growth outpace all other B2B suppliers and AdTech names, and trail only DraftKings ( DKNG ). The firm's proprietary top-down analysis leads it to believe the estimates may be on the conservative side. Beynon highlighted that GAMB shares now trade at 8X the EBITDA estimate and and 14X the EPS mark.

Macquarie assigned a price target of $13 based on a blend of 12X the firm's 2024 EBITDA estimate and 18X the free cash flow estimate.

Shares of GAMB moved up 2.60% in afternoon trading on Wednesday and returned to double-digits again for the first time since the Q1 earnings report landed on the lap of investors.

More on Gambling.com:

• Growth metrics on Gambling.com.
• Recent options trades on Gambling.com.
• Seeking Alpha's Quant Rating for Gambling.com.

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