NeoGames Stock Continues Ascent, Analyst Forecasts More Upside
Higher past a jaw-dropping 47.26% over the yesteryear month, NeoGames (NASDAQ:NGMS) buy in is quietly single of the best-performing gaming equities this year. One psychoanalyst believes the cyberspace lottery provider testament keep its bullish ways.
In a note of hand to clients today, Stifel analyst Steven Wieczynski reiterates a “buy” rating on NeoGames, patch lifting his damage mark to $80 from $54. That implies upside of 11.1 percent from the June 8 close. While shares of the Israeli gaming company are higher past 89.47 percent year-to-date, the analyst sees room for to a greater extent upside, as investors reevaluate views on net casino and sports betting equities.
Discernible catalysts for NGMS’s recent outperformance are limited, though we proceed to consider structural tailwinds as investors potentially rotate out of OSB/iGaming names (which feature amount below force per unit area inward recent months) and into other digitally-led disruptors in the consumer space,” said Wieczynski. “We wait these trends to go on as we attack a likely extremely competitive 2021/22 NFL flavor for OSB operators.”
This is the s time inwards to a lesser extent than a month that the Stifel analyst boosted his damage forecast on NeoGames stock.
NeoGames Stock Has Makings of Internet Winner
As Wieczynski notes, the post-initial public offering (IPO) of NeoGames is goose egg short of impressive. Since going public finally November, the caudex has more than quadrupled. That puts it inward elite company among the iGaming and sports betting operators that came to securities industry o'er the past times duad of years. Only DraftKings (NASDAQ:DKNG) competes with NeoGames inward tote up takings terms among new public online gaming operators.
However, there’s a marquise difference 'tween NeoGames and cyberspace cassino and sportsbook companies. The iLottery fellowship contends with far fewer rivals, spell the iGaming and online sports wagering spaces are hyper-competitive.
The Stifel analyst points come out that some of the recent weakness inwards DraftKings is attributable to mounting contention in the online sportsbook infinite and the wallop that will get on operators’ growth.
“Many of these pressures come non hold to iLottery, which we trust supports a insurance premium multiple vs. iGaming/online sports betting peers,” said Wieczynski.
One Important Commonality
Beyond beingness an online business, NeoGames shares something else in common with its internet gambling casino and sportsbook counterparts: Its business outlook and gillyflower price are tethered to state-level legalization. Currently, the company’s biggest US market place is Michigan, and it’s ramping upward trading operations in New Hampshire down and Virginia.
The trajectory bodes “well for NGMS’s Alberta, Canada contract, where the companionship recently introduced make games to the platform, as well as for Frederick North Carolina, which currently only offers take out games, but we trust could act on a broader offering countersink downward the road (which would potential live a positive accelerator for the shares),” said Wieczynski.
NeoGames management says the keep company is pursuing iLottery contracts in the following states, inwards alphabetical order: Alaska, Connecticut, Maryland, Massachusetts, Missouri, Ohio, and Oregon.
“While NGMS’s ability to defend leading marketplace divvy up remains a prove-me story for many investors, given NGMS’s comparative scale, we see NGMS as well-positioned here as a pure-play online disruptor benefiting from first-mover advantage,” adds the Stifel analyst.
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