gan-drops-18%-on-larger-2q-loss;-analyst-sticks-to-buy

GAN Drops 18% On Larger 2Q Loss; Analyst Sticks To Buy

Shares of GAN Ltd. plunged 17.8% on Friday after the internet casino gaming and gambling software provider reported a loss for 2Q that exceeded Street estimates.

GAN) posted a 2Q loss per share of $0.33 versus a loss of $0.09 in the year-ago quarter. Analysts had expected a loss of $0.01.” data-reactid=”13″ type=”text”>GAN (GAN) posted a 2Q loss per share of $0.33 versus a loss of $0.09 in the year-ago quarter. Analysts had expected a loss of $0.01.

A five-fold jump in administrative expenses mainly hurt bottom-line results. The company stated that expenses related to its IPO in the US, expansion of operations, and increased share-based payment and related expenses, drove administrative costs higher during the quarter.

See GAN stock analysis on TipRanks).” data-reactid=”19″ type=”text”>Nonetheless, its revenues increased 99% to $8.3 million year-on-year. GAN CEO Dermot Smurfit stated, “We were pleased to achieve revenues of $8.3 million during the second quarter of 2020, a period during which nearly all of our land-based casino customers were forced to close their physical operations and when most major sporting events were cancelled as a result of the global pandemic.” (See GAN stock analysis on TipRanks).

Greg Gibas said that “GAN offers an attractive investment opportunity due to its attractive market share and differentiated technology /IP.” He further noted “Relative to an investment in a single online casino operator, GAN’s B2B model is positioned to scale faster than many B2C operators that are rolling out in new markets and offer an agnostic way to play online gaming growth in the US.” Gibas reiterated a Buy rating on the stock with a price target of $30 (45.1% upside potential).” data-reactid=”20″ type=”text”>Following the earnings, Northland Capital Market analyst Greg Gibas said that “GAN offers an attractive investment opportunity due to its attractive market share and differentiated technology /IP.” He further noted “Relative to an investment in a single online casino operator, GAN’s B2B model is positioned to scale faster than many B2C operators that are rolling out in new markets and offer an agnostic way to play online gaming growth in the US.” Gibas reiterated a Buy rating on the stock with a price target of $30 (45.1% upside potential).

price target of $28.83 implies upside potential of about 39.4%. Since its listing on Nasdaq on May 5, the stock has gained about 56%.” data-reactid=”21″ type=”text”>Currently, GAN has a Strong Buy analyst consensus. The average price target of $28.83 implies upside potential of about 39.4%. Since its listing on Nasdaq on May 5, the stock has gained about 56%.

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