GAN Stock Still Catalyst-Rich Story After Company Lifts Estimates

Shares of GAN Ltd. (NASDAQ:GAN) surged on Thursday after the company lifted its earnings before interest, taxes, depreciation and amortization (EBITDA) and revenue guidance for the second quarter and its full-year top line outlook.  But one analyst believes there’s still catalysts available.

The Nasdaq market site in New York, where GAN stock trades. An analysts sees more catalysts on the way for the shares. (Image: The Verge)

The preliminary results, including revenue of $34 million to $35 million for the June quarter and $125 million to $135 million for 2021, helped GAN stock to a modest weekly gain, while trimming the year-to-date loss to 16 percent.

B. Riley analyst David Bain says GAN’s gains are sustainable, adding that the updated guidance “suggests visibility for continued solid business-to-business growth.” In a note to clients, Bain reiterates a “buy” rating on GAN stock, with a $26 price target, implying upside of about 53 percent from the July 9 close of $17.02.

We raise estimates and note additional upcoming catalysts, including the 3Q21 launch/integration of both Ainsworth and Incredible Technologies content to its platform; BH21 go-live of its Coolbet sports engine in the US; and the start of the football season (4Q), which should boost sentiment for online gaming companies, overall, in our view,” said the analyst.

Coolbet, which GAN acquired last November for $175 million in cash and stock, is widely viewed as a big contributor to the company’s bullish guidance. That’s because it’s putting GAN in front of new customers in markets such as Latin America and Northern Europe.

Plenty of Positives for GAN Stock

GAN closed on the Coolbet transaction late in the first quarter, and as Bain notes, that was good timing, because the international sports calendar broke the gaming technology provider’s way.

“While 2Q21 partially benefited from higher hold and Euro Football/Copa America, we note mid-point CY21 guidance was raised ~$25M versus the ~$10M upside to 2Q21 consensus — meaning a vast majority of the gains are sustainable,” said the analyst.

Adding to the list of positives for GAN stock are deals with Incredible Technologies and Ainsworth, companies that are estimated to combine for about 10 percent of North American slot machine sales. That bolsters GAN’s online slots platform, giving it enviable positioning in the fast-growing iGaming space.

“We continue to believe GAN’s online slot exclusivity strategy makes it even ‘stickier’ to existing partners, appealing to potential ones, and increases its take-rate,” said Bain.

GAN iGaming Benefits

While GAN stock is sagging, off 37.31 percent over the past year, its growing internet casino footprint could lure investors to the shares.

Currently, market participants are assigning higher multiples to online sportsbook operators, while they seem to be ignoring the superior margins and longer growth runways offered by pure play iGaming companies. That growth trajectory could eventually prove to be a boon for technology providers like GAN. The company is likely pursuing more content accords to that effect.

“We believe GAN continued to pursue additional exclusive content opportunities for both slots and tables (potentially live-dealer), and continue to believe the differentiator will be a key component to additional GAN tentacles in iGaming total addressable market growth,” according to Bain.

Todd Shriber

Gaming Financials, Casino Business----Todd Shriber got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long/short hedge fund, where he specialized in trading sector and international ETFs leading up to and during the financial crisis. Currently, he analyzes, researches, and writes on ETFs for a variety of Web-based publications and financial services firms. Shriber has been quoted in Barron's,, and The Wall Street Journal. His work has been published on sites such as Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and He joined the news writing team in 2019, and lives in Southern California, where he enjoys golf and taking his black lab to the dog park. When in Las Vegas, he likes to wager on college football, the NBA, three-card poker, and roulette, even though he knows better. Email:

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