Analysts Sing Praises for Gambling.com and Sportradar
Stock Market Betters Take Aim at Gambling.com, Sportradar, Bally's, and MGM Resorts
In a bullish stance on March 20, Jefferies' David Katz voiced optimism about Gambling.com, stating, "Gambling.com's stellar performance, boasting a 95% gross margin and 40% EBITDA margin, is a promising play on domestic digital growth." Katz believes the company's potential EBITDA of $100 million is increasingly attainable, while the successful incorporation of OddsHoldings offers additional profit potential.
Barry Jonas of Truist Securities concurred, emphasizing Gambling.com's continued success in online gaming, which offset slowing sports betting revenue due to reduced launches and challenging comps. He maintains a positive outlook on the company's journey towards $100 million in EBITDA.
Regarding Sportradar, Katz shared an upbeat viewpoint on March 20. The strong Q4 performance, with revenue and EBITDA surging 22% and 53% YoY, respectively, signaled continued growth. Katz also highlighted the Netflix- style earnings presentation and the additional upside from the IMG deal.
Bally's Faces Liquidity Concerns and MGM Stays Steady
Truist Securities' Barry Jonas noted potential upside from acquisitions like the Queen casino but remains cautious due to execution risks and share liquidity concerns. Fitch Ratings issued a stable outlook for MGM Resorts International, affirming the company's IDR at 'BB-'.
Insights into Industry Trends
Increased competition in the sports betting market requires Bally's to stay nimble, potentially exploring niche markets and live streaming. MGM's stock performance is sensitive to Las Vegas tourism trends, while Caesars demonstrates resilience amid tariffs. Responsible gaming initiatives and partnerships, like UNLV's gaming law students' programs, remain key focuses for operators like BetMGM.
Gambling.com's impressive financial performance, evidenced by a 95% gross margin and 40% EBITDA margin, has earned it optimistic appraisals from analysts like Jefferies' David Katz and Barry Jonas of Truist Securities. Katz believes the company's potential EBITDA of $100 million is increasingly attainable, while the successful integration of OddsHoldings offers additional profit potential. Similarly, Sportradar's strong Q4 performance, with revenue and EBITDA up 22% and 53% YoY, respectively, has analysts like Katz optimistic about its continued growth. However, in the casino-and-gambling sector, concerns about liquidity persist, as highlighted by Barry Jonas in the case of Bally's, despite potential upsides from acquisitions like the Queen casino.
