Golden Nugget Online Gaming Stock are yet to unlock their Full Potential, Say B. Riley Analyst

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B.Riley analyst David Bain told clients on Thursday that the Golden Nugget Online Gaming (NASDAQ: GNOG) stock has the potential to more than double. GNOG internet casino operator stock is one of the best performing gaming equities.

Bain estimates that GNOG stock will reach $27 in 12 months, more than double the $12 price it resides at the moment. That seems like an ambitious forecast, given that the name has struggled since going public last December.

Bain’s GNOG forecast is above the average Wall Street target of $24. However, GNOG is young in the gaming industry, and Bain is convinced by its potential to go up the ladder.

GNOG operates sports wagering, iGaming, and land-based casino and is likely to get more credit than companies with no brick and mortar business. GNOG has online sportsbooks in some states, and its main source of revenue, the internet casinos.

Bain believes GNOG possessing sportsbooks and internet casinos gives it’s a positive margin. Bain adds that iGaming is more profitable than online sportsbooks. And that gives GNOG a leading superior margin.

When estimating how much GNOG stock will grow, analysts forecast $42 billion for iGaming and sports wagering in the US when the industries are fully mature.

Using New Jersey as an example and a 30 percent at maturity and a 10 percent GNOG share, Bain notes that GNOG would eventually generate $726 million before interest, taxes, depreciation, and amortization on iGaming alone.

GNOG is a notable brand that has well-established land-based casinos. Furthermore, GNOG has access to Golden Nugget’s 2.5 Golden 24k rewards members and Landry’s 3 million-plus select members. Truly, a high market value opportunity is waiting to be unlocked at this point.

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