Enthusiast Gaming price target lowered to C$1.25 from C$1.65 at B. Riley

B. Riley lowered the firm’s price target on Enthusiast Gaming to C$1.25 from C$1.65 and keeps a Buy rating on the shares. The analyst now models a lower revenue base in fiscal 2024 amid the company’s strategic shift to more profitable revenue streams, which the firm believes will result in low-margin video programmatic revenues dropping from roughly 50% of media and content revenue to just 10%-12%. Enthusiast is positioning itself “to not only survive what has proven to be a challenging multiyear advertising environment but also come out the other side as a leaner, profitable company that remains a leading digital gaming media and entertainment platform,” the analyst tells investors in a research note.