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EVOLUTION AB

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EVO trade ideas

Hyper growth gem - 10x potential?Evolution AB, a Swedish gaming company specializing in online casino and live dealer games, has seen substantial growth in recent years, fueled by increasing demand for digital gaming experiences and its reputation as a leader in live casino solutions. Technical analysis: The stock has been in an extremely strong uptrend and during the Covid stimulus period we put in a giant Wave 3. We are now in Wave 4, consolidating waiting for the next breakout. The consolidation represents a giant bull flag triangle and could break out soon, the 1-1 extension suggests this could push up to a giant 10x, moving the current market cap from approximately 20bn to 200bn USD. I suspect that with increased stimulus particularly in China, which accounts for a large proportion of their business, we could get a really strong rally but a lot would need to go right for this to achieve a 10x. Fundamental analysis: Here’s a factors that could support the idea of Evolution becoming a 10x stock, along with potential risks to consider. Factors Supporting Growth Potential 1. Growing Market Demand for Online Gaming - The online gambling industry is expected to grow rapidly, driven by increasing digital adoption and the expansion of regulated markets globally. Evolution is positioned well to capture market share as more countries and U.S. states legalize online gambling, creating potential for steady revenue growth. 2. Unique Market Position in Live Casino Solutions - Evolution holds a dominant position in live casino games, a niche within online gambling that is difficult for competitors to replicate due to high operational costs and technology requirements. With its advanced technology and innovative offerings, such as game shows and various live dealer formats, Evolution can maintain pricing power and customer loyalty, which supports long-term growth. 3. Revenue and Profitability Track Record - Evolution has consistently shown strong revenue growth, high profit margins, and effective cost management, thanks to its scalable business model and focus on premium services. This high-margin business model is attractive for investors, especially if it continues to grow and maintain profitability. 4. Acquisitions and Product Diversification - Evolution has diversified its offerings through acquisitions, including NetEnt and Big Time Gaming, expanding into areas like slot games and enhancing its product portfolio. This allows Evolution to tap into a broader audience, making it less dependent on one particular product line and enhancing growth prospects. 5. Increasing U.S. Presence - The U.S. is one of the largest potential markets for online gaming, and Evolution’s expansion into U.S. states with legalized online gambling is a significant growth driver. As more states regulate online gaming, Evolution could benefit from first-mover advantages and strong brand recognition. Risks to Consider 1. Regulatory Challenges - The online gambling industry is highly regulated, and regulatory changes or restrictions in key markets (e.g., Europe and the U.S.) could impact Evolution’s growth and profitability. Changes in tax laws, compliance costs, or licensing requirements could pose obstacles. 2. Competition - The online gaming space is competitive, with established companies like Playtech, as well as new entrants with deep pockets, seeking to capture market share. While Evolution’s position in live casino gaming provides some protection, intensified competition could impact pricing or require increased spending on innovation and marketing. 3. Dependence on a Niche Segment - While live casino gaming is growing, Evolution’s focus on this segment could become a limitation if consumer preferences shift significantly. Although Evolution has diversified into other types of games, a large portion of its revenue still comes from live casino products. 4. Macroeconomic Factors - The company’s growth could be sensitive to broader economic conditions, especially as disposable income impacts consumer spending on gaming. Any downturns that impact consumer spending could affect the growth trajectory of online gambling companies. A global recession would really crush this stock so please be mindful that strong performance would depend on a strong healthy global economy. Evolution AB has significant growth potential given its dominant market position, expansion into new markets like the U.S., and ability to innovate in the online gaming space. However, achieving a 10x return would require sustained growth over a long period, along with continued expansion into untapped or underpenetrated markets without major regulatory setbacks. The chart supports the start of very strong and it’s currently trading below historic P/E ratio. Not financial advice
OMXSTO:EVOLong
by NoFOMO_
Head and Shoulders and moreEvo is an online and media, gamming and lottery company from sweden that is expanding all over the world. Fundamentally sound and with great financial ratios. Tech wise is doing a clear reverse HaS that should break higher. On a wave analysis it might be in wave 5 of 1 which means you might want to buy now 1,227 for the break of the neck and with a target of 1,280 - 1,300. Then sell and wait for wave 2 to unfold and buy again for the real wave 3 rally.....
OMXSTO:EVOLong
by Taigosan
EVO not done going lowerShort term looking for a failed test to break back into to the trend channel. After that we should visit the 760-780 level. Looking at market prodile that area is LVN (Low volume node) wich supports the notion of it being a bouce area. Also it was former resistance in october 2020. And if one lines up a fib retracement structure that "rhymes" with historical pivot areas this area would represent a fib 61.8 retrace from the speculative top (not yet made). Looking at EWT this seems to be a wave 4. My guess it ends in my projected bounce area. This area (760-780) would be a perfect long aiming for ~1890 in wave 5. But first we short it at the 1150-1200 level :-)
OMXSTO:EVOShort
by Rationell
2
Trading Idea - Evolution Gaming GroupBUY ENTRY: 1590 SEK TARGET: 2000 SEK (+25%) STOP: 1378 SEK 1.) The stock is in a solid long-term upward trend above tech support at SEK 481.9 2.) The growth forecast for the coming years is one of the company's strengths. 3.) The profit margins achieved by the company are among the highest of any listed company. The company's business is extremely profitable. 4.) The company's financial situation is excellent, which gives it considerable investment capacity.
OMXSTO:EVOLong
by Traderherz-Analytics
4
This Swedish Gaming Company will SoarEarly mover advantage. Evolution’s lack of competition enables it to rapidly grow in new markets and create a loyal customer base, with high switching costs. The company has effectively grown EBITA margins from 41.6% in 1Q18 to 64.8% in 3Q20. Margin expansion is expected to continue. Massive untapped markets. Europe is estimated to be around $2.5bn (EVVTY has 50% market share), Asian market is ~15x the size of Europe (150% YoY growth for EVVTY in Asia). North America’s market is ~$210mn, a 42% increase YoY, with NJ and PA the only states currently operating (NY looks promising). Management thinks the US will be the largest in the long-term. Undetected from Wall Street. Evolution has almost no analyst coverage in the US and very minimal coverage in Europe, presenting opportunity for additional growth as institutional money managers recognize this opportunity and draw attention to the stock. Additionally, Evolution has a founder-led management team that is highly aligned with shareholders (mgmt owns over 30% of the stock).
OTC:EVVTYLong
by SugarMuffin