Analyst Bernie McTernan from Needham maintained a Buy rating on Super Group (SGHC) and keeping the price target at $14.00.
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Bernie McTernan’s rating is based on Super Group’s (SGHC) impressive second-quarter performance, where both revenue and Adjusted EBITDA surpassed market expectations by 11% and 25%, respectively. This strong performance has led to an upward revision of the company’s guidance for the year, with the ex-US Adjusted EBITDA now expected to be between $500 million and $510 million, up from the initial guidance of over $480 million.
Despite the consolidated annual guidance, which includes US losses, being 9% above consensus, the revenue guidance slightly trails by 1%. However, McTernan notes that the management team has a history of exceeding and raising guidance throughout the year, which adds confidence to the Buy rating. This combination of strong quarterly results and an optimistic outlook for the remainder of the year underpins McTernan’s positive recommendation for SGHC stock.
According to TipRanks, McTernan is a 4-star analyst with an average return of 7.8% and a 51.70% success rate. McTernan covers the Consumer Cyclical sector, focusing on stocks such as Super Group (SGHC), Flutter Entertainment PLC, and DraftKings.