Peel Hunt selects Gaming Realms as a top small-cap stock for 2021
Slingo games publisher the sole gambling stock among 30 picks including Lok'nStore and Joules
UK investment banking specialist Peel Hunt has singled out London-listed games publisher Gaming Realms as a top small-cap stock for the coming year. After a troubling financial year in 2020 due to Covid-19, Peel Hunt analysts have chosen 30 top small-cap companies for 2021, covering 13 sectors with a median average market cap of £120m. The chosen businesses range in market cap from storage unit firm Lok’nStore at £193m down to Jersey-headquartered mining group Petra Diamonds at £15m. Gaming Realms – which last month issued a trading update predicting a full-year revenue rise of 55% – is the only gambling business to have made the list, with a market cap of £95m. Peel Hunt analyst Ivor Jones wrote: “Gaming Realms has spent a long time seeding its Slingo-based strategy, and it is on the cusp of harvest time. “Slingo is a long-established and distinctive game that is being deployed by major online gambling operators in the UK and, most important for the future, in the US, with Spain and Italy to follow. “As Gaming Realms grows profits and market cap we expect it to become increasingly relevant to a wider group of investors. “The operating leverage of this largely fixed cost-business with global potential will help to drive the share price higher,” he added. The share price of Gaming Realms dropped by more than 12% in early trading.