Bragg's Continued Push Into US & European iGaming Markets Will Diversify Revenue And Drive Growth, Analyst Says

Author: Anusuya Lahiri | March 22, 2023 03:20pm

• Benchmark analyst Mike Hickey reiterates Bragg Gaming Group Inc (NASDAQ:BRAG) with a Speculative Buy and an $8 price target.
• BRAG delivered Q4 financial results that exceeded the consensus view on profitability and updated FY23 guidance.
• The quarterly performance was led mainly by new PAM & turnkey launches in the Dutch and Czech markets, along with better-than-expected exclusive and proprietary content performance. 
• BRAG has guided for positive FY23 operating cash flow and will self-fund new investment opportunities, including their U.S. expansion. 
• Year-end cash was €11 million, and debt was €9 million. 
• BRAG emphasized that they do not believe in the need for another capital raise in the near future. 
• Continued entry into the U.S. & European iGaming markets will continue to diversify revenue and be the critical driver of growth. 
• Better-than-expected content performance was incremental in this quarter’s beat, and as the iGaming market continues to grow in the states & abroad, capitalizing on new markets will improve margins and boost profitability. 
• BRAG already operates in several vital iGaming states, including New Jersey, Michigan, and Connecticut, with a planned launch in Pennsylvania, the second-largest iGaming market in the U.S., pending approval.
• The price target multiple is in-line with peers, which Hickey thinks is appropriate considering his view of BRAG’s elevated revenue growth opportunity and emerging profit margin.
• Price Action: BRAG shares traded higher by 0.67% at $3.7650 on the last check Wednesday.

Posted In: BRAG