Analyst Mike Hickey of Benchmark Co. maintained a Buy rating on Gambling.com, reducing the price target to $14.00.
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Mike Hickey has given his Buy rating due to a combination of factors including Gambling.com’s impressive financial performance and strategic positioning. The company reported record revenue and AEBITDA for Q2, surpassing market expectations, which highlights its ability to generate strong cash flow and expand its revenue streams beyond traditional search. This growth is further supported by its diversification into non-search digital marketing channels and the rapid expansion of its sports data services.
Additionally, Hickey notes the company’s strategic shift towards building high-authority gambling brands and adapting to AI-powered search disruptions, which positions it for sustained growth. The potential growth in the U.S. predictions market is also seen as a significant opportunity, with the possibility of accelerating the legalization of online sports betting and iGaming. These factors, combined with disciplined capital deployment and a scalable, asset-light operating model, underpin Hickey’s confidence in the company’s future prospects and justify the Buy rating.
In another report released today, BTIG also maintained a Buy rating on the stock with a $12.00 price target.