Recent industry data suggests the online bingo market is strong, which makes Intertain Group (TSX:IT) attractive, says Global Maxfin Capital analyst Ralph Garcea.
In a research update to clients this morning, Garcea maintained his “Strong Buy” rating on Intertain, but raised his one-year target on the stock to $14.50, up from his previous target of $9.00.
Garcea notes that recent results from London-listed 888 Holdings and a bullish bingo forecast from research firm H2 Gambling are a good indication of the strength in the online bingo market. The analyst expects Intertain’s acquisition of B2C bingo leader Mandalay Media will positively impact the company’s second-half results.
Intertain Group was founded in 2013 and went public earlier this year. The company, a real-money online gambling operator, is best known for its InterCasino and InterPoker brands.
Garcea says Intertain continues to target geographic expansion, and is currently looking at South and Central America, Mexico, and the United States. He notes that the company believes it can make at least one more acquisition before the end of this year, possibly in the area of social casino and sports book.