Kambi Group (KMBIF – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst James Wheatcroft from Jefferies maintained a Buy rating on the stock and has a SEK155.00 price target.
James Wheatcroft has given his Buy rating due to a combination of factors including Kambi Group’s recent financial performance and strategic developments. The company’s fourth-quarter revenues exceeded expectations by 4%, and its EBIT was significantly higher than anticipated, indicating strong operational performance. Despite some challenges such as customer migration and increased gaming taxes, Kambi has shown promising customer acquisition momentum in key markets like Brazil and the US.
Additionally, the company has raised its long-term sports margin guidance, reflecting confidence in its automated pricing capabilities. The current valuation of Kambi Group, with a 5.0x EV/EBITDA for FY25E, is considered low for a leader in the online sports betting platform sector, suggesting potential for upward revaluation. These factors collectively underpin Wheatcroft’s positive outlook and Buy rating for the stock.
According to TipRanks, Wheatcroft is a 4-star analyst with an average return of 6.8% and a 46.31% success rate.