Inspired Entertainment Stock Could Inspire More Gains
Relative to other gaming stocks, Inspired Entertainment (NASDAQ: INSE) leads a somewhat nondescript existence, but some analysts believe the shares deserve more acclaim.
Toiling in anonymity is often a fact of life for stocks with market capitalizations of $277.74 million – where Inspired settled on Monday – and that’s true across all industries. However, the supplier of video gaming terminals (VGT) and software is up 16.67% over the past month, potentially signaling the stock is worthy of more attention. B. Riley analyst David Bain concurs, citing the company’s strong third-quarter earnings before interest, taxes, depreciation, and amortization (EBITDA).
3Q24 was highlighted by structural margin enhancements in its gaming and leisure segment, discussed below. Interactive EBITDA grew 47%, driven by 40% top-line growth and higher margins (compound effect),” wrote the analyst.
Bain rates shares of Inspired “buy” with a $21 price target, or nearly double where the stock closed on Monday.
Inspired Entertainment’s Interactive Unit is Growing
Inspired’s interactive unit underpins the broader growth thesis. Inspired also has room to rapidly accelerate growth in the interactive gaming arena by way of its strong content library.
The company also has considerable leverage in the rapidly growing iGaming space. As Bain noted, Inspired has notched hybrid table game deals with operators including BetMGM, Caesars, and FanDuel, and those accords pertain to multiple countries, including the US.
