Golden Nugget Online Gaming (GNOG, $15.57) gets buy rating from Jefferies

Golden Nugget Online Gaming  shares got a buy rating from a Jefferies analyst  who initiated coverage of the online gambling/sports entertainment company.

Analyst David Katz gave a $28 price target, citing “demonstrated leadership-level assets and capabilities."

"The magnitude and productivity prospects of the iGaming market have not been fully appreciated by [Wall] Street, ... and GNOG's positioning and product strength have been proven in New Jersey," Katz said.

According to Katz, Golden Nugget is a “compelling investment”. He mentioned that the company’s 2020 performance in the nascent, competitive NJ market (revenue of $91.1 million and Ebitda of $28.9 million) “provides a framework for the future."

Katz mentioned factors such as ownership of the Golden Nugget brand, access to 10 markets, breadth of product with more than 870 titles, innovation, and demonstrated customer-relationship-management capabilities, as he said Golden Nugget brings "leadership-level assets."