Macquarie Bank commences coverage of Super Group, setting a $17 target price
Super Group's African Expansion: A Key Driver of Growth
Super Group, a leading online gambling company, is making significant strides in the African market. The company currently holds podium positions in eight African markets, including South Africa, Kenya, and Nigeria, and these positions are crucial for its expansion.
Analyst Chad Beynon has highlighted Super Group's significant exposure to Africa as a key driver of growth. Africa revenue for Super Group has increased 200%+ and comprises 40% of total revenue, a testament to the market's potential.
Super Group's geographic focus has become more pronounced following its exit from the US sports betting and iGaming markets. This strategic move has allowed the company to concentrate on its African operations, where it is well-positioned to leverage its iGaming strength in emerging regions.
The company's strong balance sheet, with no debt and unrestricted cash of $393m as of the second quarter of 2025, and its consistent free cash flow provide capacity for mergers and acquisitions to expand market share. M&A could be on the table for Super Group expansion.
Super Group handled €43.8bn in wagers for the year 2024, with around 80% of its overall business coming from online casino operations. The company reported an average of 4.8 million monthly customers in 2024.
Super Group's geographic focus, strong balance sheet, and consistent free cash flow position it favorably for growth and expansion. In fact, while expansion for Super Group is expected to be slow in comparison to African markets, which have demonstrated a more receptive stance to online gambling, the company is well-positioned to capitalize on this trend.
African markets have relatively little competition from land-based casinos compared to operators heavily dependent on sports betting. This provides Super Group with a unique opportunity to establish strong market leadership and enhance brand recognition, customer trust, and competitive advantage, facilitating further growth across the continent.
Macquarie has initiated coverage of Super Group with an "outperform" rating and a $17 price target, reflecting the positive outlook for the company's growth prospects. At the time of writing, Super Group's NYSE stock was at $13.18, up from a 30-day low of $11.03 on 2 September.
Super Group operates in more than 20 jurisdictions and employs around 3,300 people across 16 regions. The company returns capital to investors through a quarterly dividend of $0.04.
In conclusion, Super Group's strategic focus on Africa, combined with its strong financial position and consistent free cash flow, positions it well for growth and expansion in the African market. The company's strong market positions in key African countries and the relatively low competition from land-based casinos provide a solid foundation for future growth.
