Inspired Entertainment price target raised to $21 from $18 at Roth MKM

Roth MKM analyst Edward Engel raised the firm’s price target on Inspired Entertainment to $21 from $18 and keeps a Buy rating on the shares. The analyst notes that the favorable currency trends and Europe’s economic stability have been key drivers behind the stock rerating ahead of its Q4 results, but the bigger trend is a "structural rerating" as Inspired Entertainment’s earnings mix shifts to higher growth and margin iGaming segments. The firm sees continued upside as digital segments contribute a growing share of EBITDA over time.