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Bragg Gaming gets Speculative Buy tag, $3 price tag as Canaccord Genuity initiates coverage

Last updated: 20:59 02 Feb 2021 GMT, First published: 20:47 02 Feb 2021 GMT

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Canaccord expects the iGaming market to grow to US$7.1 billion in the US and C$1.03 billion in Canada by 2025

Bragg Gaming Group Inc (TSE:BRAG) (OTCMKTS:BRGGF), the online casino gaming company, earned a Speculative Buy rating and C$3 price target from analysts at Canaccord Genuity when the firm initiated coverage on Tuesday.

Analysts Matthew Lee and Aravinda Galappatthige noted that while Bragg’s business-to-business (B2B) iGaming offerings currently serve casinos primarily in Europe, the company is well positioned to expand its base.

“In our view, the company offers an attractive combination of growth and profitability in the iGaming space while exposing investors to the rising tides of legalization worldwide,” the analysts wrote. “We believe Bragg will continue driving organic growth by adding new iGaming clients within its current footprint and by taking advantage of its scalable model to expand its presence in North America, South America, and Africa.”

READ: Bragg Gaming backs Google’s increased access to online gaming

Bragg’s platform allows smaller licensed casino operators to give their users a world-class online experience without a significant tech stack investment, Cannacord wrote. That, plus a balance sheet featuring C$46 million in net cash, can help the company be both an acquirer driving growth and a target for larger players.

“We believe Bragg’s content assets and suite of turnkey products position it well to compete across all geographies,” the analysts wrote. “Bragg has utilized a combination of proprietary content and exclusive deals with suppliers to create an extensive range of over 10,000 popular games that its clients can pick from and utilize in their online casinos, a range that we believe is difficult for competitors to replicate. Bragg’s second key differentiator is its wide suite of turnkey products beyond content rights and industry-leading turnaround speed (integration can occur in as little as three weeks), which allows its casino partners to quickly and effectively launch and maintain a full-scale iGaming platform.”

Specifically, Canaccord expects the iGaming market to grow to US$7.1 billion in the US and C$1.03 billion in Canada by 2025. Based on a market share of 3%, that could mean revenue of C$57 million in revenue for Bragg that year.

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com

Follow him on Twitter @andrew_kessel

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