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

We feel now is a pretty good time to analyse Bragg Gaming Group Inc.'s (TSE:BRAG) business as it appears the company may be on the cusp of a considerable accomplishment. Bragg Gaming Group Inc. operates as an iGaming content and technology solutions provider serving online and land-based gaming operators with its proprietary and exclusive content. With the latest financial year loss of €3.8m and a trailing-twelve-month loss of €5.3m, the CA$126m market-cap company amplified its loss by moving further away from its breakeven target. 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.

See our latest analysis for Bragg Gaming Group

Bragg Gaming Group is bordering on breakeven, according to the 6 Canadian Hospitality analysts. They expect the company to post a final loss in 2024, before turning a profit of €1.1m in 2025. So, the company is predicted to breakeven just over a year from now. 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 102% 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.

Underlying developments driving Bragg Gaming Group's growth isn’t the focus of this broad overview, though, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 9.2% 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 key fundamentals of Bragg Gaming Group which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Bragg Gaming Group, take a look at Bragg Gaming Group's company page on Simply Wall St. We've also put together a list of pertinent factors you should look at:

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.