Jefferies Lowers Gambling.com Group Ltd's Price Target to $15.00

Jefferies analyst David Katz has lowered the price target for Gambling.com Group (GAMB) from $18 to $15, representing a 16.67% decrease. The average target price from 8 analysts is $16, with a high estimate of $20 and a low estimate of $12, indicating a 54.14% upside from the current price of $10.38. The average brokerage recommendation is 1.6, indicating an "Outperform" status.

Jefferies analyst David Katz has lowered the price target for Gambling.com Group (GAMB) from $18 to $15, representing a 16.67% decrease. The average target price from 8 analysts is $16, with a high estimate of $20 and a low estimate of $12, indicating a 54.14% upside from the current price of $10.38. The average brokerage recommendation is 1.6, indicating an "Outperform" status.

The price target reduction follows Gambling.com's second-quarter results, which showed a 1% beat on adjusted EBITDA. Despite this beat, the company reduced its fiscal year 2025 adjusted EBITDA guidance by 7% at the midpoint. The guidance cut reflects several challenges, including the impact of SEO from generative AI growth, temporary disruption to search rankings from an early third-quarter Google algorithm update, and investments into adjacent marketing channels [1].

These headwinds were partially offset by foreign exchange tailwinds, Missouri online sports betting launch, and stronger subscription performance, according to Stifel’s analysis. Jefferies reduced its fiscal year 2025 and 2026 adjusted EBITDA estimates by 7% and 8% respectively, while 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 [3].

In other recent news, Gambling.com Group Ltd reported its second-quarter 2025 earnings, exceeding expectations with an earnings per share (EPS) of $0.37, significantly above the forecasted $0.17. Revenue for the quarter was $39.6 million, slightly surpassing the anticipated $38.92 million. Despite these challenges, the company’s revenue guidance was slightly increased, factoring in merger and acquisition activities and favorable foreign exchange conditions. Jefferies also adjusted its price target for Gambling.com, reducing it to $15 from $18, while still retaining a Buy rating. This adjustment reflects Jefferies’ updated financial projections, including minor changes to revenue and adjusted EBITDA estimates [3].

Gambling.com Group Ltd reported its second-quarter 2025 earnings, exceeding expectations with an earnings per share (EPS) of $0.37, significantly above the forecasted $0.17. Revenue for the quarter was $39.6 million, slightly surpassing the anticipated $38.92 million. Despite these challenges, the company’s revenue guidance was slightly increased, factoring in merger and acquisition activities and favorable foreign exchange conditions [2].

These recent developments highlight the company’s recent performance and the outlook from analysts. Investors should closely monitor the company's financial reports and analyst evaluations to make informed investment decisions.

References:
1. [1] https://www.investing.com/news/analyst-ratings/gamblingcom-stock-price-target-lowered-to-15-at-stifel-on-genai-impact-93CH-4194853
2. [2] https://www.marketwatch.com/story/gambling-com-group-drops-after-outlook-shift-swing-to-2q-loss-60fade74
3. [3] https://za.investing.com/news/analyst-ratings/jefferies-lowers-gamblingcom-stock-price-target-to-15-on-multiple-contraction-93CH-3842277