Esports Entertainment Group (NASDAQ:GMBL) shares climbed Thursday after an analyst from Noble Capital Markets raised the firm’s price target on the stock to $11 per share from $10 and reiterated an Outperform rating in a note to clients.
The firm held a Q&A with CEO Grant Johnson at its NobleCon17 event last month and discussed the company’s vertical integration approach to the esports industry, its acquisition timeline, future revenue projections and more.
In fact, the day after Johnson’s presentation, the company closed the acquisition of Esports Gaming League, a B2B provider of live tournaments and events on a proprietary platform with more than 350,000 registered gamers.
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“The company has recently closed on its EGL acquisition and appears set to soon close on Lucky Dino,” Noble wrote. “Based on comments at NobleCon 17, management appears sanguine about closing the ggCircuit and Helix acquisitions in March or early April. We believe that the closing of these acquisitions will raise the investment profile of the company.”
Esports Entertainment shares traded 6% higher at $8.20 on Thursday afternoon.
Taking into account the looming acquisitions, Noble raised its fiscal 2022 revenue estimate to $70 million up from $24.5 million, with adjusted EBITDA improving to a gain of $2.3 million from a loss of $2 million.
The firm noted that Esports Entertainment is currently trading below its esports and gambling peers and based its $11 price target on the average of enterprise value multiples of public companies in those categories.