Super Group (NYSE:SGHC) inventory slid sharply on Wednesday after Canaccord Genuity downgraded the inventory to Hold regardless of “solid Q4 results.”
Equity analysts Michael Graham and Jason Tilchen defined that “regulatory changes in key markets” and murky profitability dynamics pressured the transfer in score. The two have been additionally cautious on the prospects for investments within the United States, which they cited as a drag on margins.
“We are raising our Q1, FY23, and out-year revenue estimates to reflect the impact from acquisition of Jumpman Gaming and consolidation of Digital Gaming Corporation, partly offset by regulatory headwinds in key markets,” the workforce informed shoppers. “We are lowering our Q1, FY23, and out-year profitability expectations to reflect investments related to the company’s expansion into the US.”
Tilchen and Graham lowered their worth goal to $5 from $8 alongside the downgrade. Shares of the Guernsey-based gaming firm slipped 4.5%.
Read extra on the corporate’s newest earnings outcomes.