NuWays AG Reaffirms BUY Rating for Bet-at-home AG

NuWays AG has reaffirmed its BUY rating for bet-at-home AG, with a target price of €5.50. The recommendation follows the company's robust preliminary Q2 results, surpassing estimates in both revenue and earnings. Bet-at-home reported sales of €13.7 million, up 17% quarter-on-quarter and 25% year-on-year, driven by the UEFA EURO championship and increased marketing efforts.

EBITDA before special items came in at €1.0 million, lower than last year's €4.3 million but above Q1's €0.2 million and NuWays' estimate of €0.3 million. Operating expenses were lower than anticipated, contributing to the positive results.

The performance puts bet-at-home on track to achieve the upper end of its FY24 guidance of €45-53 million in sales and -€1 million to €2.5 million in EBITDA. However, estimates remain unchanged at €49.8 million in sales and €1.4 million in EBITDA for the year.

Further positive momentum could arise from a potential favorable ruling by the European Court of Justice regarding customer claims from unauthorized sports betting. Such a ruling would reduce risks and legal costs, positively impacting EBITDA.

Given the solid operating performance and diminishing risks, NuWays AG continues to recommend a BUY rating with a target price of €5.50 for bet-at-home AG.