1. Inspired Entertainment, Inc. (NASDAQ:INSE)
Average Price Target Upside as of September 1: 55.04%
Number of Hedge Fund Holders: 3
Inspired Entertainment, Inc. (NASDAQ:INSE) is a gaming technology company that operates in the casino industry. It provides a portfolio of technology, content, and hardware for regulated gambling, betting, lottery, social, and leisure operators across various online and land-based casino operators.
INSE was held by 3 hedge funds in Q2 2024, with total stakes worth $1.43 million. Samjo Capital is the top shareholder with a position worth $22.5 million.
It operates through three main business segments, namely Gaming, Virtual Sports, and Interactive segment. Inspired Entertainment, Inc. (NASDAQ:INSE) has a huge market capitalization with operations in more than 35 jurisdictions. It has around 50,000 gaming machines at various locations, and 32,000 retail venues, and provides games for more than 170 digital websites.
Inspired Entertainment, Inc. (NASDAQ:INSE) has gained a remarkable position through its interactive segment. The segment has been outperforming other businesses in the past and will continue doing so in the second quarter of 2024. Interactive segment revenue grew by 40% and EBITDA for the segment was up 69% year-over-year. The segment benefited from its growing market share, new customers, and the launch of new products in various geographies.
Management had indicated at least a 50% subsequent increase in the adjusted EBITDA during its first quarter earning release, it was able to surpass its expectations and grew the EBITDA by 56.5% over the quarter. Moreover, the net income for the quarter was also impressive at around $2 million.
Inspired Entertainment, Inc. (NASDAQ:INSE) signed a new six-year contract with William Hill to supply 5,000 terminals, indicating its near-term growth prospects. Moreover, management expects an even better second half for the company.
INSE is also cheap at current levels, it is trading at 15 times its forward earnings, an 8% discount to its sector. Moreover, its earnings are also expected to grow by 96% during the year to reach $0.51. 5 analysts have a consensus Buy rating on the stock, with their median price target of $14 pointing towards a 55% upside from current levels.
While we acknowledge the potential of Inspired Entertainment, Inc. (NASDAQ:INSE) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for a promising AI stock that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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