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Broad Geographic Expansion And Technology Investments Will Unlock Value

SGHC
SGHC
AnalystConsensusTarget
Not Invested
Published 21 Nov 2024

Update shared on08 Aug 2025

Fair value Increased 8.08%
Previous
AnalystConsensusTarget's Fair Value
US$15.29
20.5% undervalued intrinsic discount
20 Aug
US$12.15
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1Y
257.4%
7D
5.0%

Super Group's Analyst Price Target has increased to $15.00, reflecting strong Q2 results, raised FY25 guidance, and positive momentum from its U.S. market exit and scalable in-house technology.


Analyst Commentary


  • Bullish analysts highlighted record Q2 results, driven in part by the Club World Cup, leading to an unexpected and sizable increase in FY25 revenue and adjusted EBITDA guidance.
  • The company's planned exit from the U.S. iGaming market is seen as a positive strategic move, with resources redirected toward more profitable or higher-barrier markets.
  • Super Group's in-house technology platforms and local market expertise are viewed as key advantages, particularly in markets with high barriers to entry.
  • Broad-based operating momentum across sports betting and iGaming platforms supports higher revenue visibility, with potential upside if Club World Cup users are retained into domestic leagues.
  • The magnitude of improved outlook and financial performance has consistently surpassed prior analyst expectations, driving sequential upward revisions in price targets.

What's in the News


  • Super Group (SGHC) announced its intention to exit its U.S. iGaming operations due to regulatory challenges and unsatisfactory financial performance, evaluating multiple strategic exit options, with expected one-time restructuring costs of $30–$40 million.
  • The company raised its full-year 2025 revenue guidance to exceed $2.0 billion, up from the previous estimate of $1.925 billion.
  • Super Group (SGHC) was added to the Russell 2000 Growth-Defensive Index and the Russell 2000 Defensive Index.
  • Deloitte LLP was appointed as the new auditor, replacing BDO LLP, which ceased its role without any disagreements.

Valuation Changes


Summary of Valuation Changes for Super Group (SGHC)

  • The Consensus Analyst Price Target has risen from $14.14 to $15.00.
  • The Consensus Revenue Growth forecasts for Super Group (SGHC) has significantly risen from 8.1% per annum to 10.3% per annum.
  • The Net Profit Margin for Super Group (SGHC) has risen from 16.12% to 17.22%.

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.