Jefferies lowers Gambling.com price target, but sees buying opportunity

Jefferies lowered the firm’s price target on Gambling.com (GAMB) to $20 from $21 and keeps a Buy rating on the shares following Q1 results. Gambling.com continues to prove that it is the exception to the weakness in affiliates more broadly, with strong recurring revenue in both the business-to-business and business-to-consumer segments, the firm told investors in a research note. Jefferies added that it sees the company’s 90%+ gross margin and approximately 40% EBITDA margins as “best in class”. The firm concluded the pressured response in Gambling.com shares is a buying opportunity.