Jefferies lowers Gambling.com stock price target to $18 on multiple adjustment
Investing.com
Published Jul 02, 2025 05:04PM ET
Investing.com - Jefferies has reduced its price target on Gambling.com Group Ltd. (NASDAQ:GAMB) to $18.00 from $20.00 while maintaining a Buy rating on the stock. The company, currently trading at $11.96 with a market cap of $426 million, appears undervalued according to InvestingPro analysis, which aligns with Jefferies' bullish stance.
The price target adjustment comes from a trimming of the EV/EBITDA multiple to 10x from 10.5x, while other valuation multiples including 4x EV/Sales, 19x P/E, and 13x P/FCF remain unchanged. The company maintains impressive gross profit margins of 94.55% and has demonstrated strong revenue growth of 24.67% over the last twelve months.
Jefferies has kept its quarterly and annual estimates steady, with second-quarter 2025 revenue projected at $39 million, fiscal year 2025 revenue at $172 million, and fiscal year 2026 revenue at $195 million.
The firm's adjusted EBITDA estimates also remain consistent at $13.5 million for second-quarter 2025, $67.1 million for fiscal year 2025, and $79.4 million for fiscal year 2026.
These projections align closely with broader market expectations, with Street consensus showing $39 million for second-quarter revenue, $172 million for fiscal year 2025 revenue, and $193 million for fiscal year 2026 revenue. For deeper insights into GAMB's valuation and growth prospects, including exclusive ProTips and comprehensive financial analysis, visit InvestingPro .
In other recent news, Gambling.com Group Ltd. announced robust financial performance for the first quarter of 2025, with revenues reaching $40.6 million and Adjusted EBITDA (AEBITDA) at $15.9 million, slightly surpassing consensus estimates. Macquarie reported a year-over-year revenue increase of 39% and an EBITDA rise of 55%, attributing this to growth in the iGaming sector and a significant boost from sports data services. Despite these positive results, Macquarie adjusted its price target for Gambling.com from $19.00 to $18.00 while maintaining an Outperform rating. Benchmark and Stifel both reaffirmed their Buy ratings with an $18.00 price target, noting the company's strategic transition towards more stable subscription revenue and media partnerships.
Texas Capital initiated coverage with a Buy rating and a $17.00 price target, highlighting Gambling.com's role as a key player in the online wagering industry. The acquisition of data provider Odds Holdings was noted as a factor increasing the company's recurring revenue mix. Analysts at Benchmark suggested that Gambling.com could see significant growth if U.S. prediction markets expand, potentially accelerating online sports betting legalization. Stifel analysts pointed to the company's diverse revenue mix and operational efficiency as differentiators in a challenging sector, despite a minor forecasted decrease in adjusted EBITDA due to technology investments. Gambling.com's management remains optimistic, expecting market-share gains in the UK and Europe, and an easier competitive landscape for sports betting in North America.
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Written By: Investing.com
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