Evolution Gaming Group AB, the Services sector company, was revisited by a Wall Street analyst today. Analyst James Wheatcroft from Jefferies maintained a Buy rating on the stock and has a SEK1,350.00 price target.
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James Wheatcroft has given his Buy rating due to a combination of factors including Evolution Gaming Group AB’s strategic positioning and financial resilience. Despite a slight miss in EBITDA margins for the third quarter, the company has maintained its full-year margin guidance, indicating confidence in its financial outlook. Wheatcroft acknowledges the impact of cyberattacks in Asia on revenue growth, yet highlights the company’s ability to maintain sequential growth in Europe and achieve double-digit growth in North America. Additionally, the expansion into Latin America with new studios in Brazil and the Philippines demonstrates Evolution Gaming’s proactive approach to capturing new markets.
Wheatcroft also points out the company’s strong balance sheet, with a substantial net cash position of €656 million, which provides a buffer against potential regulatory challenges. The current valuation, at 8x EV/EBITDA for FY26E, is seen as an attractive entry point for investors, as it reflects the pricing in of regulatory headwinds and limited growth, which are expected to improve. Overall, the combination of strategic market expansion, financial stability, and an attractive valuation underpins Wheatcroft’s Buy rating for Evolution Gaming Group AB.
In another report released on October 14, Kepler Capital also maintained a Buy rating on the stock with a SEK1,000.00 price target.