James Wheatcroft, an analyst from Jefferies, maintained the Buy rating on Kambi Group. The associated price target is SEK155.00.
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James Wheatcroft has given his Buy rating due to a combination of factors influencing Kambi Group’s current and future performance. Despite the company’s revenues being slightly below consensus expectations, the EBITA figures align with market predictions. The guidance for FY25E EBITA has been revised downwards, primarily due to foreign exchange challenges, slower market development in Brazil, and delays in launching new contracts.
The strategic moves by Kambi, such as the Odds Feed+ agreement with Superbet and the acquisition of a PAM platform to enter the Nevada market, indicate growth potential. Although there are short-term impacts from FX and contract timing, the valuation at 4x EV/EBITDA for FY26E suggests a low price for a company with strong platform capabilities in online sports betting. These factors collectively contribute to the Buy rating, reflecting confidence in Kambi’s long-term prospects despite current headwinds.