Golden Nugget Online Gaming (NASDAQ:GNOG) gillyflower isn’t getting the adulation it deserves, and the epithet could potentially deliver monolithic returns — perhaps doubling or tripling, as market participants agnize ontogeny offered past online casinos.
Those are the sentiments of Jefferies analyst St. David Katz, who’s late been bullish on the online gaming name. He reiterates a “buy” rating on Golden Nugget Online with a $28 price point — intimately above the $15 area at which the shares domiciliate today.
We believe the Street’s shifty focalize to the merits of iGaming from online sports betting is underappreciated, and as proliferation evolves, GNOG’s positioning should live amend reflected inward the shares,” Katz said in a take down to clients.
The analyst waxed bullish on Tilman Fertitta’s internet gambling casino manipulator in conclusion week, but his a la mode(p) get hold of indicates a move to $28 by GNOG is to a greater extent of a stand case. In an super bullish scenario, Katz believes the stockpile put up upsurge to $45, or three-base hit its stream price. The consensus price acoustic projection among Wall Street analysts is $24.
GNOG Stock Requires Long-Term View
Equities typically don’t two-baser inwards speedy fashion, and the road to a treble is regular longer. Plus, GNOG has to agitate come out of a slide down before it tin can earnestly flirting with the lofty toll estimates countersink forward by Katz.
The accompany went public utmost December followers a merger with a special purpose acquisition companionship (SPAC) co-owned by Fertitta and Jefferies. Year-to-date, the shares are cancelled 23.25 percent, and that’s with the benefit of a 9.64 percent rally over the past tense week.
Part of that sluggishness could follow attributable to investors prioritizing names with heavier online sports betting exposure over online casinos. However, the latter offers its have favorable growth trajectory. Goldman Sachs recently said it believes cyberspace gaming will live a $14 1000000000000 manufacture inward 2033, upwards from $1.5 billion today.
Specific to GNOG, the fellowship is already profitable, holds dominant market percentage inwards New Jersey, and recently calculate 2020 receipts gaming revenue (GGR) maturation of approximately 67 percent.
Katz, the Jefferies analyst, says New island of Jersey highlights the efficacy of the iGaming investment funds thesis — one that offers meliorate margins and higher player lifetime value congener to sports wagering, leading to superior returns on invested capital letter for operators.
Nascent Signs of Momentum for GNOG
Broadly speaking, Jefferies is electropositive on the online gaming universe, including casinos and sports wagering. The research firm’s latterly updated digital gaming trademark matrix indicates thither was incremental betterment in Mar compared to February, and that long-term impulse remains “robust.”
Relevant to GNOG stock, the camber believes revenue testament trend higher inward meaningful fashion.
“While the companion is prioritizing iGaming o'er sports betting wander out, we’ve seen increased robust momentum inward March, favoring our assumptions of top-line acceleration,” said Jefferies.
This news is curated to you by the original Lucky Palace 88 APK download in Malaysia.