Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 12 Feb, 25 | GAMB | Buy | USD 15.85 | USD 17.28 | USD 18.54 | 1 day | 17.0% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
Gambling.com Group Limited operates as a performance marketing company for the online gambling industry worldwide. It provides digital marketing services for the iGaming and social casino products. The company's focus is on online casino, online sports betting, and fantasy sports industry. It publishes various branded websites, including Gambling.com, Casinos.com, RotoWire.com, and Bookies.com. The company was incorporated in 2006 and is based in Saint Helier, Jersey.
Adjusted EBITDA Surge: Adjusted EBITDA more than doubled (108% increase) to $12.6 million, with an improved Adjusted EBITDA margin of 39%, compared to 26% in the prior year.
Revenue Growth: The company reported a 37% year-over-year increase in Q3 2024 revenue, reaching $32.1 million, and expects full-year revenue to grow by 16% to $125–$127 million.
North American Market Challenges: Despite overall growth, the company acknowledged challenging comparables in North America, with no expected new market expansions for the rest of 2024, potentially limiting additional revenue opportunities.
Increased Operating Expenses: Total operating expenses rose 25% year-over-year to $20.8 million, primarily due to higher personnel costs and amortization expenses.
Key investment risks for Gambling.com Group include potential regulatory changes in the online gambling industry, reliance on North American market growth, increasing operational expenses, and competitive pressures that could impact market share and profitability.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 15.85 | 13.79 | 17.28 | 18.54 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Gambling.com Group reported strong Q3 2024 financial results, with revenue rising 37% year-over-year to USD 32.1 million and Adjusted EBITDA more than doubling to USD 12.6 million. The company continues to expand market share, delivering over 116,000 new depositing customers and winning the Casino Affiliate of the Year award. It also repurchased shares and authorized an additional USD 10 million for buybacks. With a revised full-year revenue forecast of USD 125–USD 127 million and Adjusted EBITDA expected to grow 29%, the company remains well-positioned for continued growth, particularly as the North American market rebounds. Strong cash flow and financial stability further reinforce its leadership in the industry.
As per the above-mentioned price action, recent key business and financial updates, and momentum in the stock over the last month, a ‘Buy’ rating has been given to Gambling.com Group Limited (NASDAQ: GAMB) at the current market price of USD 15.85 as of February 12,2025 at 07:05 AM PST.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Consumer Cyclical Industry: Gambling
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| GAMB Gambling.com Group Ltd |
-0.0738 0.58% | 12.55 | 16.31 | - | 3.20 | 2.92 | 2.98 | 13.99 |
| ARLUF Aristocrat Leisure Limited |
- -% | 38.65 | 35.37 | 28.82 | 4.42 | 7.20 | 6.67 | 17.72 |
| EVVTY Evolution Gaming Group AB ADR |
0.08 0.11% | 74.50 | 23.47 | 19.38 | 14.62 | 6.10 | 13.73 | 19.59 |
| EVGGF Evolution AB (publ) |
- -% | 73.87 | 22.62 | 19.01 | 14.29 | 5.99 | 13.73 | 19.73 |
| DKNG DraftKings Inc |
-0.16 0.48% | 33.05 | - | - | 5.74 | 25.03 | 5.76 | -35.9838 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is February 12,2025 at 07:05 AM PST. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
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