Bragg Gaming Group Inc. (TSE:BRAG): Are Analysts Optimistic?

Bragg Gaming Group Inc. (TSE:BRAG) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Bragg Gaming Group Inc. provides business to business online gaming technology platform and casino content aggregator worldwide. The CA$215m market-cap company posted a loss in its most recent financial year of €3.8m and a latest trailing-twelve-month loss of €5.3m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Bragg Gaming Group's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Bragg Gaming Group

Consensus from 8 of the Canadian Hospitality analysts is that Bragg Gaming Group is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of €1.9m in 2025. Therefore, the company is expected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 97% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Bragg Gaming Group's upcoming projects, though, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 2.1% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Bragg Gaming Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Bragg Gaming Group's company page on Simply Wall St. We've also put together a list of important factors you should further research:

1. Valuation: What is Bragg Gaming Group worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Bragg Gaming Group is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Bragg Gaming Group’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.