Bragg Gaming stock rating reiterated at Market Outperform by JMP

JMP Securities and Benchmark have both reiterated a $6.00 price target and Outperform/Buy ratings for Bragg Gaming Group (NASDAQ:BRAG), citing its strong Q1 performance with revenue up 7.1% to €25.5 million and Adjusted EBITDA rising 19.7% to €4.1 million, alongside a 612 basis point gross margin expansion. The iGaming B2B solutions provider, currently trading at $4.72, is also advancing strategically with a new $6 million credit facility, an exclusive content deal with Hard Rock Digital, and the appointment of an EVP for AI and Innovation, reinforcing its growth trajectory in the online gaming sector.

Analysis

JMP Securities and Benchmark have reaffirmed their positive outlook on Bragg Gaming Group (BRAG), both reiterating a $6.00 price target, which implies notable upside from its current $4.72 trading level. This analyst confidence is underpinned by a robust first-quarter performance, where the company posted a 7.1% year-over-year revenue increase to €25.5 million and a significant 19.7% rise in Adjusted EBITDA to €4.1 million. A key driver of this enhanced profitability is the strategic focus on proprietary content, which surged 62% YoY and directly contributed to a 612 basis point expansion in gross margin to 56%. The company's growth outlook is further supported by several strategic initiatives, including a new $6 million credit facility to bolster liquidity, an exclusive content agreement with Hard Rock Digital to deepen its U.S. market penetration, and the appointment of an Executive Vice President to lead AI and innovation. JMP's valuation, based on 6.3x their 2026 estimated EBITDA, provides a clear framework for their price target, underscoring the bullish sentiment surrounding the company’s fundamental execution and strategic direction.

Key Decisions for Investors

• Given the strong Q1 financial results and dual analyst price targets of $6.00, investors may view the current trading level as an attractive entry point, as it represents significant potential upside despite the 27.7% year-to-date gain.
• Investors should closely monitor the growth trajectory of proprietary content and its impact on gross margins in subsequent quarters, as this remains the primary driver of the company's improved profitability.
• The successful execution of the Hard Rock Digital partnership in New Jersey should be watched as a key near-term catalyst for U.S. market expansion, which is critical to achieving the company's long-term growth targets.