- JMP Securities analyst Jordan Bender reiterated a Market Outperform rating on the shares of Inspired Entertainment Inc INSE with an $18 price target.
- Aristocrat Gaming chose Inspired as their partner to bring a new virtual sports experience to football fans worldwide through Aristocrat Gaming's multi-year, global licensing agreement with the National Football League (NFL).
- Aristocrat and the NFL signed a slot machine licensing agreement in 2021, allowing a Virtual Sport product, and two years later, Aristocrat awarded a sublicense to INSE to provide NFL content.
- The analyst believes the agreement makes logical sense given its market-leading technology, market share, and scale.
- Content creation is playing an important role as the online gaming ecosystem evolves globally, highlighted by the company increasing online Virtual revenue at a 50%+ CAGR since 2019.
- In general, popularity of the product is more pronounced across Europe, giving the company incremental content across its various markets, the analyst noted.
- That said, online operators in the U.S. have been increasingly positive on the ability to localize content to end-users. The analyst believes INSE's ability to use local NFL teams will resonate well as online gaming grows in the U.S.
- The analyst also thinks having a name like the NFL to offer customers will serve as a catalyst in promoting Virtual Sports within online apps toward sports-minded end-users.
- INSE's emergence of online industries in the U.S. opens it up to multi-billion dollar opportunities, said the analyst.
- The analyst noted that adding NFL content will highlight to B2C operators that virtual sports can target the core sports betting customer and help increase underlying revenue.
- Price Action: INSE shares are trading higher by 2.90% at $13.12 on the last check Monday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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