BTIG Downgrades Gambling.com Group to Buy, PT Lowered to $12

BTIG Downgrades Gambling.com Group to Buy, PT Lowered to $12

BTIG has revised its price target on Gambling.com Group Ltd. (NASDAQ: GAMB) to $12.00, down from $19.00, while maintaining a Buy rating. The downgrade reflects the company's search business challenges, which have led to a 38% stock decline over the past six months [1].

Despite reporting Q2 2025 earnings that exceeded expectations, Gambling.com's guidance was reduced due to search business challenges. The company's gross profit margins remain impressive at 94.55%, and its P/E ratio is attractive at 10.86x. BTIG expects new channels to compensate for search-related revenue gaps while maintaining margins in the 35-40% range [1].

BTIG lowered its 2026 and 2027 estimates, reflecting a more conservative organic growth outlook for the marketing business. The company anticipates market uncertainty may weigh on its valuation during this transition, with core operations projected to grow approximately 6% in 2026 and 7-8% in 2027-2028 [1].

Gambling.com Group reported an EPS of $0.37 in Q2 2025, surpassing expectations by 117.65%. Revenue for the quarter reached $39.6 million, slightly exceeding forecasts. Jefferies adjusted its price target to $15 after these results [1].

References:
[1] https://www.investing.com/news/analyst-ratings/gamblingcom-stock-price-target-lowered-to-12-at-btig-on-search-headwinds-93CH-4194798