In a report released yesterday, Gianluca Tucci from Haywood reiterated a Buy rating on Bragg Gaming Group Inc, with a price target of C$7.50.
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Gianluca Tucci’s rating is based on several factors that highlight Bragg Gaming Group Inc’s strong operational performance despite challenges. The company faced a decline in the Netherlands market, but excluding this, it achieved a 20% year-over-year revenue growth, showcasing its strategic success in other regions. Notably, Bragg Gaming saw significant revenue increases in the United States and Brazil, which supports its content-led expansion strategy into promising markets.
Bragg Gaming Group also demonstrated positive operating leverage with a 9% year-over-year growth in Adjusted EBITDA, surpassing total revenue growth and confirming the benefits of scaling its proprietary content distribution. The company’s management has maintained its full-year guidance, reflecting confidence in overcoming regulatory challenges. Additionally, Bragg Gaming strengthened its financial position by securing a new credit facility, enhancing its flexibility for future growth. The stock is considered undervalued, trading at a lower multiple compared to its peers, which supports the Buy rating.
BRAG’s price has also changed dramatically for the past six months – from C$6.470 to C$3.370, which is a -47.91% drop .