By Owen Tucker-Smith
Shares of Super Group rose after Canaccord Genuity raised its rating for the digital gaming and entertainment company, lauding its efforts to retreat from the U.S. sports-betting market.
Super Group's stock was recently up 16%, to $7.92, late Friday. The shares are up 27% so far this year and have more than doubled over the past six months.
Canaccord upgraded the stock to "buy" from "hold" on Thursday. In a note, analysts Jason Tilchen, Michael Graham and Matthew Weber said that even though shares had already been gaining consistently over the past year, they currently see the valuation as "more attractive than ever."
The analysts said the Guernsey company's exit from the U.S. sports-betting market was a disciplined strategy that would allow it to concentrate on areas with a clearer path to growth. Africa and the Middle East comprised only 5% of the company's revenue five years ago, the analysts said, but now Africa is the company's largest region for sales. Momentum in the region, they said, was a likely driver of growth during the fourth quarter.
The company this week reported preliminary results for the fourth quarter, with ex-U.S. revenue and adjusted earnings before interest, taxes, depreciation and amortization expected to land above previous guidance.
Write to Owen Tucker-Smith at owen.tucker-smith@wsj.com
(END) Dow Jones Newswires
January 24, 2025 15:24 ET (20:24 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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