Inspired Entertainment (INSE) Reiterated at Market Outperform by Citizens

Citizens analyst Jordan Bender reiterated a Market Outperform rating and $11.00 price target on Inspired Entertainment Inc (NASDAQ: INSE).

The analyst commented, "The sale of the holiday park business and further expansion into online content have provided clarity for the INSE business model in the next several years. Its interactive business is attractive, with TTM Virtual Sports EBITDA margins of 72% and Interactive's at 68%, helping support higher FCF conversion. Overall, we model EBITDA increasing 2% in 2026E, including the recent tax rate adjustments in the U.K. and the sale of the holiday park business, through a shift in mix and restructuring actions, including a reduction in headcount. The positive outlook extends into 2027E with another year of mid-single-digit EBITDA growth, implying EBITDA of $117M, implying the stock is trading at 5.0x 2027E consensus EBITDA, compared to its five-year average of 5.5x. The outlook, if executed, will lead to share appreciation, in our view, with EBITDA margins now nearing Light and Wonder (LNWO, NC) and Aristocrat (ALL-AU, NC), two of the bellwethers in the space, while trading at a 51% discount off 2027E consensus EBITDA to those two companies."

For an analyst ratings summary and ratings history on Inspired Entertainment Inc click here. For more ratings news on Inspired Entertainment Inc click here.

Shares of Inspired Entertainment Inc closed at $9.51 yesterday.

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