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Jan 12 2021, 07:15 GMT
Gamesys’ (GYS) better-than-expected 2020 performance results in a c.3-5% upgrade to our 2021-2022 EBITDA forecasts. It also provides strong support for our growth-led investment thesis – we estimate that the group has now delivered >20% 2018-2020 pro forma revenue CAGR. Our medium-term revenue growth forecast, tweaked higher to c.10% (2020-2022 CAGR; previously 9%), still appears beatable, meaning current operational and earnings momentum can be maintained (our revised 2021 EBITDA forecast is c.5% above prior consensus; c.7% for 2022). GYS is trading on 7.2x our revised 2021 EV/EBITDA and c.11% free cashflow yield, attractive given its current growth trajectory and strategic opportunity set. We reiterate our ‘Outperform’ recommendation.
Jan 12 2021, 07:15 GMT