Kambi Group’s Strategic Partnerships and Market Expansion Drive Buy Rating Despite Q1 Underperformance

In a report released today, James Wheatcroft from Jefferies maintained a Buy rating on Kambi Group (KMBIF – Research Report), with a price target of SEK155.00.

James Wheatcroft has given his Buy rating due to a combination of factors that highlight Kambi Group’s potential for future growth. Despite a slight underperformance in the first quarter, with revenues falling 2% short of consensus expectations and a significant drop in EBITA, the company has maintained its full-year guidance for FY25E. This confidence is supported by anticipated seasonal revenue and customer launches in the second half of the year.
Key developments contributing to this positive outlook include new partnerships with major players like LiveScore and Svenska Spel, as well as expansion into new markets such as Brazil and a forthcoming partnership with the Ontario Lottery Company. Additionally, Kambi has extended its partnership with BetCity in the Netherlands and secured licensing approval in Nevada. The company’s strong financial position, with net cash of €56 million and a €7 million buyback in the first quarter, along with a valuation of 4.8x EV/EBITDA for FY25E, suggests that the current stock price may undervalue its leading platform capabilities in online sports betting.

According to TipRanks, Wheatcroft is ranked #2619 out of 9371 analysts.