Macquarie assesses Ainsworth Game can return to profitability in FY22 and narrows its expected loss for FY21 to -$13m. The company has announced an exclusive five-year real money gambling licensing agreement with GAN.
Macquarie assesses the business has come “a long way” with increased earnings from North American gambling operations. There continues to be operating leverage to improved outright sales volumes and demand is improving from the lows of the pandemic.
Macquarie retains an Outperform rating and raises the target to $1.10 from 95c.
Sector: Consumer Services.
Target price is $1.10.Current Price is $0.88. Difference: $0.22 – (brackets indicate current price is over target). If AGI meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).
