Gaming Realms PLC (AIM:GMR, OTCQX:PSDMF) doesn't get the credit it deserves (certainly in stock market terms), according to a broker that closely follows the gaming group.
Peel Hunt reiterated its 'buy' advice and 60p price target in the wake of a robust trading update.
In a note to clients, it said: "We believe Gaming Realms does not get the valuation credit it deserves for consistently hitting demanding growth targets. It is in the sweet spot of the global gambling industry and yet is on a single-digit PE (price to earnings) multiple for the financial year 2025."
In afternoon trading, the stock was up almost 6% at 39.41p.
The company, a developer of mobile-focused gaming content, reported an 18% increase in revenue to approximately £13.5 million and a 21% rise in adjusted EBITDA to about £5.8 million compared to the same period last year.
The strong performance was driven by the core content licensing business, which saw revenues grow 28% year-on-year. The company also expanded its market presence by partnering with 22 new clients and launching seven new Slingo games.