Bragg Gaming Group keeps “Buy” rating at Haywood

Bragg Gaming Group (Bragg Gaming Group Stock Quote, Chart, News, Analysts, Financials TSX:BRAG) delivered a soft first quarter but maintained its full-year outlook, prompting Haywood Capital Markets analyst Gianluca Tucci to reiterate his “Buy” rating and C$9.00 price target in a May 15 report.

Tucci said Bragg’s scalable B2B iGaming platform remains well-positioned for growth as the company expands into new markets and strengthens its presence in mature ones.

“The company highlights traditional Q1 seasonality, which we acknowledge – H2 is typically notably stronger than H1,” Tucci said. “We note the company recently reached an agreement with its lenders to repay US$5M of its outstanding US$7M secured promissory note and extended the maturity of the remaining US$2M to June 6, 2025. The company is in the process of securing a new revolving credit facility from a third-party lender at more favourable terms than the existing note.”

Bragg Gaming is a business-to-business gaming tech company that provides casino operators with ready-made online gaming platforms. Most of its revenue comes from Europe, though its presence in North and South America is growing.

The company reported strong revenue from its key markets, generating €2.1-million in Brazil and €3.0-million in the U.S.

“Markets such as Brazil and the USA are expected to be pivotal for growth, with the company well-positioned to capture a share of Brazil’s rapidly growing iGaming market and enhance its U.S. market penetration through strategic partnerships with major operators like Caesars,” Tucci said. “We remain encouraged by the performance in key growth regions. The company’s shift in focus from PAM to content is underscored by its robust pipeline of opportunities, and the recently introduced Stock Appreciation Rights (SAR) plan aligns management incentives with shareholder value.”

Tucci thinks Bragg will do $19.7-million in Adjusted EBITDA on revenue of $117.9-million in fiscal 2025. ANALYST thinks those numbers will improve to $21.2-million on revenue of $129.7-million in fiscal 2026.

Overall, BRAG’s evolving content strategy and market expansion plans position it for strong growth, particularly in North America and Brazil, while its technological and data-driven initiatives further strengthen its competitive edge.

“We believe BRAG is focused on growth in key metrics, such as FCF and FCF conversion, in the pursuit of elevating its level of attractiveness to investors and prospective suitors,” Tucci said.

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