GAMB - Gambling.com is called a casino sector standout by B. Riley Securities

2023-07-18 06:47:22 ET

B Riley Securities started off coverage on Gambling.com Group Limited ( NASDAQ: GAMB ) with a Buy rating and a $14 price target.

Analyst David Bain and team noted Gambling.com ( GAMB ) participates in the hypergrowth online gambling sector with less risk and more profitably than Booking.com ( BKNG ) in the travel industry.

Gambling.com ( GAMB ) is noted to operate ~50 targeted domestic and international Web sites strategically positioned to source depositing customers to online wagering markets.

The company is called a market share gainer with a significant, profitable white space opportunity. GAMB is also seen as poised to profitably outpace the overall online gaming total addressable market.

"We believe GAMB’s high-margin referral model to the online gaming industry piggybacks visible online gaming industry growth and new jurisdictional expansion catalysts and is further fueled by (1) a real-time U.S. B2C mix transition to performance-based marketing, similar to more mature online betting markets; (2) growth of skins, or additional B2C Web sites, leading to multiple success fees with the same B2C operator; and (3) market share gains and profitable new market entrances."

In terms of valuation, GAMB’s CY23 EV/EBITDA valuation implies an ~19% discount to comparables, including ad tech companies, despite historical and expected forward organic growth well above peers.

Gambling.com ( GAMB ) has a clean sweep of all bull ratings on Wall Street, while the Seeking Alpha Quant Rating is flashing Hold.

Shares of Gambling.com ( GAMB ) rose 0.59% in premarket trading to $11.91 vs. the 52-week trading range of $6.62 to $12.13.

More on Gambling.com:

• Gambling.com Group: Still A Lot Of Upside Left
• Growth metrics on Gambling.com
• Valuation metrics on Gambling.com
• Recent option trades on Gambling.com

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