GIG - ABG endrer til kjøp fra hold, kursmål 6,50 (4,80)
GIG:ABG SUNDAL OPPGRADERER TIL KJØP FRA HOLD, KURSMÅL 6,50 (4,80)
Oslo (TDN Direkt): ABG Sundal Collier oppgraderer sin anbefaling på Gaming Innovation Group til kjøp fra hold. Kursmålet oppjusteres til 6,50 kroner fra 4,80 kroner, melder Bloomberg News mandag.
Oslo (TDN Direkt): ABG Sundal Collier oppgraderer sin anbefaling på Gaming Innovation Group til kjøp fra hold. Kursmålet oppjusteres til 6,50 kroner fra 4,80 kroner, melder Bloomberg News mandag.
Orakel O
29.01.2018 kl 11:44
2377
Gaming Innovation Group
BUY (Hold), GAMIG.OL: SP, NOK 5.20; TP NOK 6.50 (4.80)
Accelerating positive momentum into 2018
Up to BUY (Hold), TP NOK 6.5 (4.8)
Good Q4 expected and multiple triggers set up for ’18e
High risk, but higher reward potential makes us positive
We believe Q4 will be solid
We increase our Q4 revenue estimate for Gaming Innovation (GIG) to EUR 40m, resulting in 2017e revenue of ~EUR 120.5m after the successful launch of Highroller in late November. We also raise operator revenue and the marketing sales ratio for ’18e due to Highroller, which in turn lowers ’18e EBITDA. In addition, we reduce ’18e EBITDA due the allocated resources for development of the iGC platform for the newly signed tier 1 casino operator. However, GIG is also expected to get a return on its operational investments, thus we increase ’19e and ’20e EBITDA. Also, we note that we have not included any revenue estimates from either GIG Sportsbook nor GIG Games in our estimates. If GIG is successful in its development efforts of these new business segments, we then believe our estimates have material upside (H2’18 and onwards). Overall, we expect a strong Q4 for GIG and Q4 to be a positive event with a 2018 strong outlook to support our estimates.
Many triggers in 2018 with potential to lift estimates
Over the next 12 months, we recognize several possible triggers for the GIG share: (1) a strong Q4’17 report with solid 2018 outlook, (2) positive new information at the ICE conference, (3) launch of Sportsbook ahead of FIFA World Cup, (4) expansion into two new regulated markets (Denmark + unnamed), (5) launch of proprietary casino games, (6) lower cost growth, and (7) new affiliate acquisitions. All these triggers will have potential to increase profitability as well as our estimates.
High reward/high risk play: Up to BUY, TP NOK 6.5
We believe that based on the aforementioned triggers the GIG share has potential to double over the next two years. However, we view the company’s highly aggressive growth strategy as a high-risk strategy. Our new TP of NOK 6.5 (4.8) corresponds to a P/E of 15x (2020e) and ~25% upside potential. We upgrade to BUY (Hold) Q4 report is due 13 Feb.
BUY (Hold), GAMIG.OL: SP, NOK 5.20; TP NOK 6.50 (4.80)
Accelerating positive momentum into 2018
Up to BUY (Hold), TP NOK 6.5 (4.8)
Good Q4 expected and multiple triggers set up for ’18e
High risk, but higher reward potential makes us positive
We believe Q4 will be solid
We increase our Q4 revenue estimate for Gaming Innovation (GIG) to EUR 40m, resulting in 2017e revenue of ~EUR 120.5m after the successful launch of Highroller in late November. We also raise operator revenue and the marketing sales ratio for ’18e due to Highroller, which in turn lowers ’18e EBITDA. In addition, we reduce ’18e EBITDA due the allocated resources for development of the iGC platform for the newly signed tier 1 casino operator. However, GIG is also expected to get a return on its operational investments, thus we increase ’19e and ’20e EBITDA. Also, we note that we have not included any revenue estimates from either GIG Sportsbook nor GIG Games in our estimates. If GIG is successful in its development efforts of these new business segments, we then believe our estimates have material upside (H2’18 and onwards). Overall, we expect a strong Q4 for GIG and Q4 to be a positive event with a 2018 strong outlook to support our estimates.
Many triggers in 2018 with potential to lift estimates
Over the next 12 months, we recognize several possible triggers for the GIG share: (1) a strong Q4’17 report with solid 2018 outlook, (2) positive new information at the ICE conference, (3) launch of Sportsbook ahead of FIFA World Cup, (4) expansion into two new regulated markets (Denmark + unnamed), (5) launch of proprietary casino games, (6) lower cost growth, and (7) new affiliate acquisitions. All these triggers will have potential to increase profitability as well as our estimates.
High reward/high risk play: Up to BUY, TP NOK 6.5
We believe that based on the aforementioned triggers the GIG share has potential to double over the next two years. However, we view the company’s highly aggressive growth strategy as a high-risk strategy. Our new TP of NOK 6.5 (4.8) corresponds to a P/E of 15x (2020e) and ~25% upside potential. We upgrade to BUY (Hold) Q4 report is due 13 Feb.
Orakel O
29.01.2018 kl 13:21
2303
Ellers er det meget spennende at det nevnes en så nærliggende trigger fra ABG, som allerede neste uke:
"New iGC Info from the ICE conference. On a positive note, there is some likelihood that we will receive information on the newly signed Tier 1 operator (i.e. name, plans, scope etc). The ICE conference starts on 6 February."
ABG tror altså på at markedet kan få informasjon om kunden GIG har vunnet kontrakt med, størrelse på kontrakt etc, på kommende ukes store ICE konferanse. Det er en meget naturlig plass å slippe nyheter av dette kaliber. Som vi har hørt, var dette trolig den B2B kontrakten med størst interresse i 2017, og det å presentere dette på ICE, som er B2B industriens store happening, ville gi max publisitet til GIG sin plattform og produkter.
Carnegie nevnte Wynn som en trolig tier1 kandidat, og siden deres CEO ble offer for metoo kampanjen før helgen, ville en lansering av dette nå kunne være perfekt ut mot deres aksjeholdere. Rådgiverene deres vet nok godt at det kan være smart å få vri litt på nyhetsbildet nå rundt Wynn!
"New iGC Info from the ICE conference. On a positive note, there is some likelihood that we will receive information on the newly signed Tier 1 operator (i.e. name, plans, scope etc). The ICE conference starts on 6 February."
ABG tror altså på at markedet kan få informasjon om kunden GIG har vunnet kontrakt med, størrelse på kontrakt etc, på kommende ukes store ICE konferanse. Det er en meget naturlig plass å slippe nyheter av dette kaliber. Som vi har hørt, var dette trolig den B2B kontrakten med størst interresse i 2017, og det å presentere dette på ICE, som er B2B industriens store happening, ville gi max publisitet til GIG sin plattform og produkter.
Carnegie nevnte Wynn som en trolig tier1 kandidat, og siden deres CEO ble offer for metoo kampanjen før helgen, ville en lansering av dette nå kunne være perfekt ut mot deres aksjeholdere. Rådgiverene deres vet nok godt at det kan være smart å få vri litt på nyhetsbildet nå rundt Wynn!
Redigert 29.01.2018 kl 13:22
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