Golden Nugget Online Shines as An Analyst Tells People to ‘Buy’
NASDAQ: GNOG (Golden Nugget Online Gaming) stands out as part of the gaming equities that performed best on Wednesday. That is after the enviable positioning of the company was touted by an analyst of Wall Street in the online sports betting industries and internet casinos.
Golden Nugget Online Gaming Stock
According to a note from Mike Hickey of Benchmark to clients, he rates the stock of GNOG a “buy,” as it has a price target of 27 dollars. This forecast means an upside of a 31.5% from its closing price on January 12. The call of Hickey is sufficient for having this iGaming title increase by almost 12% in the trading of late morning. If these gains are included in or hold today, it is going to be the best intraday performance of GNOG since its debut on December 30th as a public organization.
Landcadia, a SPAC (special purpose acquisition company) controlled by investment bank Jefferies and Tilman Fertitta, has collaborated with Golden Nugget Online for bringing the latter public. They completed the transaction on the 29th of December. The largest shareholder in GNOG is Fertitta.
According to Hickey from Benchmark, the bullishneed he had on the title can be partly attributed to solid market share of online casinos and higher brand recognition, and also the early entry all the company into the online/mobile sports betting.
GNOG is a dominant operator of iGaming in NJ, and even has a market access in West Virginia, Pennsylvania, and Michigan.
Today will make it the 10th day that Golden Nugget Online Glitters will be trading as an independent body, and the initial analyst to start the stock’s coverage is Hickey.
The market capitalization of this company is $1,380,000,000, which puts it strongly in the small-cap region. We can broadly say that analysts do not cover small-cap companies with similar intensity compared to firms with large and also mega-cap. Nevertheless, there’s a scintillation of online sports betting and casinos in the investment community, and we have a couple of analysts that rush to cover these industries’ newly public names.
Now that Hickey has begun to track GNOG, it is also possible that others will soon join in this. That scene mostly plays out with companies that are newly public irrespective of industry.
Perks of GNOG
Before the company merged with Landcadia, it was profitable, which is rare among emerging and young online gaming firms. In addition, the transaction of SPAC made provision for the goal with a cash of $80,000,000 for its balance sheet that Hickey sees as an advantage for investors and the company itself.
According to the analyst, the solid balance sheet is “supportive” of the investments they planned and their efforts to go into new industries. He sees the sports betting and iGaming markets as “potentially huge and accelerating.”
The GGR (gross gaming revenue) of GNOG jumped 93% in the 3rd quarter, while the increase of both the operating income and net revenue is 92%.
While the firm provides quarterly reports in 2021, investors and analysts will likely key in the data of Pennsylvania and Michigan, and also updates on trials to get licenses of online casinos and/or sports wagering in new states.
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