10 Best Casino Stocks To Buy According to Analysts

4. Super Group (SGHC) Limited (NYSE:SGHC)

Average Price Target Upside as of September 1: 47.43%

Number of Hedge Fund Holders: 7

Super Group (SGHC) Limited (NYSE:SGHC) engages in the online sports betting and gaming sector. It operates through two main platforms Betway and Spin.

Betway is a renowned online sports betting brand that allows users to engage in sports betting for various events and offers a user-friendly interface with extensive market coverage. On the other hand, Spin is a multi-brand online casino that provides a variety of gaming options such as table games and slot machine games.

Super Group (SGHC) Limited (NYSE:SGHC) has a strong market presence in the Americas, Africa, and Europe. With around 38% of revenue coming from the African market.

What makes the company an attractive investment option is its debt-free balance sheet with a surplus of €307 million ($340 million) in unrestricted cash. On top of this, the company left analysts astonished with record performance in FQ2 2024. It delivered record quarterly revenue of €408 million ($451 million), up 9% year-over-year. Strong revenue growth was on the back of robust performance from both its platforms.

The nibble and decisive strategies of management are paying off. Super Group (SGHC) Limited (NYSE:SGHC) is close to achieving consistent 20% EBITDA margins. For the latest quarter, it generated a record adjusted EBITDA of around $102 million, with margins at 24% indicating an 11% increase year-over-year.

The company’s online casino is gaining more traction and comprised 79% of the total revenue during Q2 2024. It has also entered into global betting partnerships with English Premier League Champions Manchester City and secured its sponsor position at South Africa’s Premier Soccer League, now known as Betway Premiership.

It was held by 7 hedge funds in Q2 2024, with total stakes worth $9.83 million. 4 analysts have a consensus Buy opinion on the stock and their median price target of $5.09 presents an upside of 47% from the current levels.