Jefferies analyst James Wheatcroft has maintained their bullish stance on CIRSA stock, giving a Buy rating on September 1.
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James Wheatcroft has given his Buy rating due to a combination of factors that highlight Cirsa Enterprises, S.A.U.’s strong performance and growth potential. The company has shown significant revenue growth, with a notable 11.9% year-over-year increase in the first half, despite facing adverse foreign exchange conditions. Additionally, Cirsa’s online revenues have surged by 64%, and the company has maintained a stable EBITDA margin, which underscores its operational efficiency.
Another reason for the Buy rating is Cirsa’s unique and fully regulated gaming platform, which sets it apart in the industry. The company boasts a remarkable track record of consistent EBITDA growth over 67 consecutive quarters, excluding the COVID-19 period, and has a seasoned management team with a history of successful mergers and acquisitions. Furthermore, Cirsa’s current valuation appears attractive, trading at a low EV/EBITDA multiple, suggesting that the market may be underestimating its growth potential. These factors collectively contribute to Wheatcroft’s positive outlook on Cirsa’s stock.
According to TipRanks, Wheatcroft is a 4-star analyst with an average return of 9.2% and a 51.20% success rate. Wheatcroft covers the Consumer Cyclical sector, focusing on stocks such as Entain plc, Inchcape, and Flutter Entertainment PLC.
In another report released on September 1, Bernstein also initiated coverage with a Buy rating on the stock with a €20.20 price target.