Posted on: January 13, 2021, 09:52h.
Final up to date on: January 13, 2021, 12:53h.
Golden Nugget On-line Gaming (NASDAQ:GNOG) is standing out as one in every of Wednesday’s best-performing gaming equities. That’s after a Wall Avenue analyst touted the corporate’s enviable positioning within the web casinos and on-line sports activities betting markets.
In a notice to purchasers at this time, Benchmark’s Mike Hickey charges GNOG inventory a “purchase,” with a $27 worth goal. That forecast implies upside of 31.5 p.c from the Jan. 12 closing worth. Hickey’s name is sufficient to have the iGaming title increased by virtually 12 p.c in late morning buying and selling. If these beneficial properties maintain or are added to, at this time can be GNOG’s greatest intraday efficiency since its Dec. 30 debut as a public firm.
Landcadia is a particular objective acquisition firm (SPAC) managed by Tilman Fertitta and funding financial institution Jefferies. It merged with Golden Nugget On-line to convey the latter public. That transaction was completed on Dec. 29. Fertitta is GNOG’s largest shareholder.
Benchmark’s Hickey says his bullishness on the title is partly attributable to superior model recognition and powerful on-line casinos market share, coupled with the corporate’s early entry into cellular/on-line sports activities wagering.
GNOG is likely one of the dominant iGaming operators in New Jersey, and likewise has market entry in Michigan, Pennsylvania, and West Virginia.
At this time marks simply the tenth day that GNOG is buying and selling as a freestanding entity,n and Hickey is the primary analyst to provoke protection of the inventory.
The corporate sports activities a market capitalization of $1.38 billion, placing it firmly within the small-cap territory. Broadly talking, analysts don’t cowl smaller firms with the identical depth as large- and mega-cap corporations. Nevertheless, on-line casinos and sports activities betting are scintillating within the funding group, and there are examples of analysts speeding to cover newly public names in these industries.
It’s additionally doable that now Hickey is monitoring GNOG, others will be a part of the occasion over the near-term. That state of affairs regularly performs out with newly public firms, no matter trade.
Previous to its merger with Landcadia, GNOG was worthwhile — a rarity amongst younger, rising on-line gaming firms. Moreover, the SPAC transaction supplied the goal with $80 million in money for its stability sheet, which Hickey highlights as a profit for the corporate and buyers.
The analyst says the robust stability sheet is “supportive” of deliberate investments and efforts to enter new markets. He views the iGaming and sports activities wagering industries as “doubtlessly large and accelerating.”
Within the third quarter, GNOG’s gross gaming income (GGR) jumped 93 percent, whereas web income and working earnings each elevated 92 p.c.
As the corporate delivers quarterly experiences this 12 months, analysts and buyers are more likely to key in Michigan and Pennsylvania knowledge, in addition to updates on efforts to acquire on-line on line casino and/or sports activities betting licenses in new states.