GAN - GAN Limited falls after earnings disappoint Jefferies downgrade

Jefferies downgraded GAN Limited ( NASDAQ: GAN ) to a Hold rating from Buy after the company's earnings report came in again slightly lower than expectations. Analyst David Katz said the weak print coupled with the guidance suspension is likely to result in negative reaction for shares.

Katz also noted that a shift in risk tolerance among operators and investors over the past year and lack of new jurisdictions opening, notably in California, leads to limited near-term growth/recovery opportunities for GAN.

Jefferies lowered FY22, FY23, and FY24 estimates on GAN given the FX volatility and lack of near to mid-term guidance. For FY22, the firm now expects the company to generate $138.3M of revenue and $9.3M of adjusted. EBITDA, vs. $146.8M and $13.7M prior. For FY23 and FY24, Jefferies cut its EBITDA estimates to $13.4M and $22.2M from $29.9M and $43.7M prior. The price target on GAN was sliced to $2 from $9.

Shares of GAN Limited ( GAN ) fell 6.59% in premarket trading on Tuesday following the earnings release.

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