Gambling.com Group: Jefferies maintains Buy, PT down to $15 from $18.

Gambling.com Group: Jefferies maintains Buy, PT down to $15 from $18.

In a recent update, investment firm Jefferies has revised its price target for Gambling.com Group Ltd. (NASDAQ: GAMB) to $15 from its previous estimate of $18. Despite this adjustment, Jefferies maintains a Buy rating on the stock [1]. The downgrade reflects the company's recent earnings report and updated financial projections.

Gambling.com Group reported its Q2 2025 earnings, surpassing analysts' expectations. The company posted an EPS of $0.37, significantly higher than the projected $0.17, and revenue for the quarter reached $39.6 million, slightly surpassing the anticipated $38.92 million. This performance underscores the company's ability to outperform financial forecasts [1].

Jefferies now forecasts Gambling.com to generate $173 million in revenue and $64 million in adjusted EBITDA for fiscal year 2025, compared to previous estimates of $172 million and $67 million respectively. Looking ahead to fiscal year 2026, the firm projects revenue of $197 million and adjusted EBITDA of $70 million, revised from earlier forecasts of $195 million and $79 million [1].

The lower price target primarily stems from multiple contraction, with Jefferies reducing its valuation metrics across the board. The EV/Sales ratio is now at 3.0x from 4.0x, EV/EBITDA is at 9.0x from 10.0x, P/E is at 17.0x from 19.0x, and P/FCF is at 11.5x from 13.0x based on FY26 estimates [1].

Investors should closely monitor Gambling.com's financial reports and analyst evaluations to stay informed about the company's financial health and future prospects.

References:
[1] https://www.investing.com/news/analyst-ratings/jefferies-lowers-gamblingcom-stock-price-target-to-15-on-multiple-contraction-93CH-4194790