In a report released today, Bernie McTernan from Needham reiterated a Buy rating on Super Group (SGHC) (SGHC – Research Report), with a price target of $10.00.
Bernie McTernan has given his Buy rating due to a combination of factors, including the strong performance of Super Group (SGHC) in 2024 and the potential for continued growth. The company demonstrated impressive revenue acceleration outside the US, increasing from 9% to 18.5%, despite challenges such as exiting the Indian market. Additionally, SGHC achieved incremental adjusted EBITDA margins of 54%, showcasing its operational efficiency.
McTernan’s future estimates for 2025 are conservative, anticipating a slowdown in revenue growth and a decrease in incremental margins. However, he believes that these projections might be overly cautious given the current momentum in SGHC’s business. This optimism about the company’s future performance underpins his decision to maintain a Buy rating and increase the price target to $10.
According to TipRanks, McTernan is a 4-star analyst with an average return of 4.8% and a 50.00% success rate. McTernan covers the Consumer Cyclical sector, focusing on stocks such as DraftKings, Super Group (SGHC), and thredUP.
In another report released yesterday, Canaccord Genuity also maintained a Buy rating on the stock with a $11.00 price target.