Enthusiast Gaming: Canaccord Raises Price Target To $8.75

Last week, Enthusiast Gaming (TSX: EGLX) announced that they closed a $58.7 million bought deal. After the bought deal closed, Canaccord raised Enthusiast Gaming’s 12-month price target to C$8.75 from C$7.50 and reiterated their buy rating on the company.

Enthusiast Gaming currently has six analysts covering the company with a weighted 12-month price target of C$6.83. This is up from the average at the start of last month, which was C$4.75. Three analysts have strong buy ratings, while the other three have buy ratings.

Robert Young, Canaccord’s analyst, says that after the multiple transactions have closed, “We believe these are positive developments which underscore Enthusiast Gaming’s maturation as a public company.”

With the bought deal closing, Young believes the company has now “mitigated a key investor risk,” which was their balance sheet. Young also believes that direct sales and subscriptions will drive margin this quarter. He writes, “We believe that incremental margins on subscription revenue are high.”

Young adds that the M&A pipeline remains robust as the company continues to target small content creators. He writes, “This target market remain extremely fragmented given low barriers to entry, and EGLX has the necessary information and resources to acquire suitable targets. A proposed U.S listing in H1/2021 would provide the company with significant investor access and potentially resources to make bigger acquisitions in the future.”

Below you can see all of Enthusiast Gaming’s current offerings, as arranged by Canaccord.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

ESGold Outlines $24.3 Million NPV For Tailings Reprocessing Project

First Majestic Encounters 711 g/t Silver Equivalent Over 8.0 Metres In Ongoing Exploration At Los Gatos

Related News

Valens: Analysts Reiterate Price Targets, Ratings Following Q3 Results

Last week, The Valens Company (TSX: VLNS) reported their third-quarter results. Revenues were stable quarter...

Tuesday, October 20, 2020, 12:19:00 PM

Uber: Analysts Expect Q1 Net Income To Approach Negative $1 Billion

Uber (NYSE: UBER) will be reporting its first quarter financial results today after market close....

Wednesday, May 5, 2021, 02:44:00 PM

Equinox Gold: BMO Lifts Target To $14.50

Earlier this week, Equinox Gold Corp. (TSX: EQX) reported its first quarter financial results for...

Friday, May 6, 2022, 11:56:01 AM

Cronos Group: Canaccord, PI Reiterate Ratings, Adjust Revenue Estimates

Cronos Group (TSX: CRON) (NASDAQ: CRON) reported its second quarter financials on August 6 pre-market,...

Sunday, August 9, 2020, 04:20:00 PM

Canaccord: IAMGOLD Has “Few Desirable Options To Plug Funding Gap”

On May 3, IAMGOLD Corporation (TSX: IMG) reported its first quarter results for 2022. The...

Thursday, May 5, 2022, 02:24:00 PM