Haywood Capital initiates coverage of Bragg Gaming with Buy rating and $3 price target

Haywood Capital Markets is initiating coverage of Bragg Gaming Group Inc (TSE:BRAG) (OTCMKTS:BRGGF) (FRA:SL4A) with a Buy rating and a $3 price target.  Bragg Gaming is a global B2B gaming technology platform provider. With operations across Europe and North America, the company is expanding into an international force within the burgeoning global online gaming market. Its main brand is ORYX Gaming, an innovative business-to-business iGaming platform, casino content aggregator, managed sportsbook, and managed services provider, offering cutting-edge content from leading studios. READ: Bragg Gaming strengthens Spanish presence with launch of ORYX Gaming on Casumo Haywood’s decision to cover Bragg Gaming comes as Canada is poised to legalize betting on individual sporting events. “We believe Bragg has a highly scalable B2B iGaming platform that should enable the company to drive revenue in the near-to-medium term,” the analyst firm wrote. “An improving regulatory environment in various jurisdictions provides a drastically increased addressable market for Bragg to capture market share.” In its note, Haywood cited three key catalysts helping the company -- a potential uplisting to the Nasdaq, a strong board and management with recent insider buying, and the company’s 2021 forecast for $73.5 million in revenue and EBITDA (earnings before interest, taxes, depreciation, and amortization) of $6.4 million.  “As we look forward into 2021, the company’s vision and growth strategy spans three areas: Core Business Growth, Diversity Product Offering and New Markets,” the firm wrote. “The company continues to evaluate its product offering and looks to enhance as well as augment its current portfolio. Lastly, we expect the company to be active in entering new markets such as the US, Canada and Latin America. For 2021, we forecast modest revenue growth of 6%, slightly above company guidance.” Bragg’s stock currently trades around $1.59 a share in New York and $1.98 a share in Toronto. Contact the author: patrick@proactiveinvestors.com Follow him on Twitter @PatrickMGraham