6. Gambling.com Group Limited (NASDAQ:GAMB)
Average Price Target Upside as of September 1: 37.39%
Number of Hedge Fund Holders: 11
Gambling.com Group Limited (NASDAQ:GAMB) is a digital marketing services company that publishes content about the gambling industry. The company helps large companies like DraftKings get customers through the content it publishes and gets a cut for each deposit. It publishes content through more than 50 websites, all of which are well known.
Gambling.com Group Limited (NASDAQ:GAMB) was held by 11 hedge funds in Q2 2024, with total stakes worth $21.6 million. G2 Investment Partners Management is the top shareholder with a position worth $6.67 million.
The company leverages its strong market presence to drive record revenues each quarter. It delivered more than 108,000 new depositing customers during the second quarter of 2024, presenting a 19% increase year-over-year. Gambling.com Group Limited (NASDAQ:GAMB) also benefits from the sports betting seasons and demonstrated strong growth in the US.
The financial performance of the company was ahead of expectations, its revenue rose 18% year-over-year to a record 30.5 million. Europe proved to be the most successful market for the company as the iGaming revenue from Europe grew 111% year-over-year. Its overall international revenues were also a success and improved by 70% during the same time.
Management has been effectively cutting costs and improving profit margins, during the second quarter, the company’s gross profits were up 16%, whereas operating expenses decreased 15% year-over-year.
Gambling.com Group Limited (NASDAQ:GAMB) has raised its 2024 guidance and now expects revenue of $123 million to $127 million, representing 15% and 24% increment year-over-year.
GAMB is cheap at current levels, it is trading at 13 times its forward earnings, a 4% discount to its sector. Moreover, its earnings are expected to grow by 68% during the year to reach $0.79.
7 analysts have a Strong Buy rating on the stock, with their 12-month median price target of $14 presenting a 37% upside from current levels.
ClearBridge Small Cap Value Strategy made the following comment about Gambling.com Group Limited (NASDAQ:GAMB) in its Q3 2023 investor letter:
“In the communication services sector, Gambling.com Group Limited (NASDAQ:GAMB) was our top individual performer. A leading provider of digital marketing services to the global online gambling industry, the company saw its stock price rise after announcing second-quarter earnings that exceeded analysts’ expectations and raising its full-year guidance, and as the football sports betting season began. Gambling.com has rapidly reached profitability in its North America lead-generation business for sports betting sites, which continues to offer compelling growth opportunities as more U.S. states legalize online gambling, while its mature European business continues to see growth from improved search engine optimization. Ultimately, we believe the company’s low marketing and capital expenditures, combined with the attractive opportunities from growth in online sports wagers, will make Gambling.com a strong long-term compounder for the portfolio.”
