Monday, September 15, 2025

Latest

Enthusiast Gaming Sees Canaccord Reiterate $9.00 Price Target

On November 23rd, Enthusiast Gaming (TSX: EGLX) announced that they acquired Outplayed, Inc, the owners of U.GG which is a league of legends website. Enthusiast Gaming is paying $45 million with a potential $12 million in earnouts subject to certain performance milestones. The company is paying $7.5 million in cash, 5.2 million shares equal to $20.6 million, and two $8.5 million deferred payments paid on the first and second anniversary of the closing date.

Enthusiast Gaming currently has 9 analysts covering the stock with an average 12-month price target of C$10.04, or an 86% upside to the current stock price. Out of the 9 analysts, 3 have strong buy ratings and 6 have buy ratings. The street high sits at C$12 from Colliers Securities and the lowest price target is C$9 from 2 different analysts.

In Canaccord’s review, they reiterate their buy rating and C$9 price target, saying that the company has started to fill its League of Legends gap with this acquisition. They say that the acquisition was done at 5.6x Outplayed’s 2022 estimated sales, which Canaccord calls dilutive as Enthusiast trades at 3.3x. They do believe that Outplayed boasts 70-80% gross margins and 45-50% EBITDA margins which remain attractive for Enthusiast.

Canaccord warns of potential “cash outflow or share issuance” as the company has many upcoming earn-outs to pay out and notes that this should remain a headwind for the company. They write, “we believe Enthusiast is doing what it said it would do and with the underlying business momentum continuing.”

Canaccord believes that Outplayed’s main IP, U.GG remains under-monetized, writing, “we believe [it] could provide a strong platform to layer subscription, direct sales, and programmatic ad sales revenues.” U.GG currently has 8 million MAU’s with only 12 employees who are in engineering roles. They believe with Enthusiast now in control, U.GG has a higher growth profile than Enthusiast.

Below you can see Canaccord’s updated estimates.


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

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Aris Mining: The Multi Billion Dollar Soto Norte PFS

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

Organigram: Canaccord Lowers Price Target To $2.50

Yesterday, Organigram Holdings (TSX: OGI) (NASDAQ: OGI) reported their fourth quarter financials. The company announced...

Tuesday, December 1, 2020, 11:17:00 AM

Aritzia Sees Consensus Price Target Rise After Q2 Results

Aritzia (TSX: ATZ) last week reported its second quarter results for fiscal 2023, for the...

Wednesday, October 19, 2022, 12:44:00 PM

PI Financial Raises Aphria’s Price Target To $11.00

On Wednesday, Aphria Inc (TSX: APHA) (NASDAQ: APHA) announced that it had entered an agreement...

Sunday, November 8, 2020, 04:20:00 PM

BMO: Weak Canadian Dollar To Weigh On Air Canada Earnings

BMO Capital Markets this past week lowered their price target on Air Canada (TSX: AC),...

Saturday, October 15, 2022, 03:36:00 PM

Verano: Canaccord Drops Price Target After Revenue Miss

On November 16th, Verano Holdings (CSE: VRNO) announced its third quarter financial results. The company...

Thursday, November 18, 2021, 11:44:00 AM