Gambling.com Price Target Lowered to $15 by Stifel

Stifel has lowered its price target on Gambling.com to $15 from $18, citing a 7% reduction in FY25 adjusted EBITDA guidance due to the impact of GenAI growth and temporary search ranking disruptions. Despite this, the firm maintains a Buy rating, noting the company's strong leadership, proprietary tech, and high authority sites position it well to adapt to alternative user monetization strategies.

In a recent development, Stifel has reduced its price target on Gambling.com Group (GAMB) from $18 to $15, while retaining a Buy rating on the stock. The adjustment reflects a 7% reduction in the company's fiscal year 2025 adjusted EBITDA guidance, primarily due to the impact of generative AI (GenAI) growth and temporary disruptions to search rankings from an early third-quarter Google algorithm update [1].

Gambling.com Group reported its second-quarter 2025 earnings, exceeding expectations with an earnings per share (EPS) of $0.37 and revenue of $39.6 million. Despite these strong results, the company reduced its fiscal year 2025 adjusted EBITDA guidance by 7% at the midpoint. Stifel's analysis suggests that the stock is currently trading below its Fair Value, presenting a potential opportunity for value investors [1].

The guidance cut reflects several challenges, including the impact to SEO from generative AI growth, temporary disruption to search rankings, and investments into adjacent marketing channels. However, these headwinds were partially offset by foreign exchange tailwinds, the Missouri online sports betting launch, and stronger subscription performance [1].

Stifel reduced its fiscal year 2025 and 2026 adjusted EBITDA estimates by 7% and 8% respectively, noting that Gambling.com’s proprietary technology, high authority sites, and strong leadership position the company well to navigate the transition to alternative user monetization strategies [1].

Other analysts have also adjusted their price targets. BTIG lowered its price target for Gambling.com to $12 from $19, while Jefferies reduced its target to $15 from $18, both while maintaining a Buy rating [1]. These developments highlight the company’s recent performance and the outlook from analysts.

References:
[1] https://www.investing.com/news/analyst-ratings/gamblingcom-stock-price-target-lowered-to-15-at-stifel-on-genai-impact-93CH-4194853