Inspired Entertainment's Partnership With Aristocrat For Virtual NFL Content Is A Touchdown, Says Analyst - Inspired Entertainment (NASDAQ:INSE)

JMP Securities analyst Jordan Bender reiterated a Market Outperform rating on the shares of Inspired Entertainment Inc INSE with an $18 price target.
Aristocrat Gaming chose Inspired as their partner to bring a new virtual sports experience to football fans worldwide through Aristocrat Gaming's multi-year, global licensing agreement with the National Football League (NFL).
Aristocrat and the NFL signed a slot machine licensing agreement in 2021, allowing a Virtual Sport product, and two years later, Aristocrat awarded a sublicense to INSE to provide NFL content.
The analyst believes the agreement makes logical sense given its market-leading technology, market share, and scale.
Content creation is playing an important role as the online gaming ecosystem evolves globally, highlighted by the company increasing online Virtual revenue at a 50%+ CAGR since 2019.
In general, popularity of the product is more pronounced across Europe, giving the company incremental content across its various markets, the analyst noted.
That said, online operators in the U.S. have been increasingly positive on the ability to localize content to end-users. The analyst believes INSE's ability to use local NFL teams will resonate well as online gaming grows in the U.S.
The analyst also thinks having a name like the NFL to offer customers will serve as a catalyst in promoting Virtual Sports within online apps toward sports-minded end-users.
INSE's emergence of online industries in the U.S. opens it up to multi-billion dollar opportunities, said the analyst.
The analyst noted that adding NFL content will highlight to B2C operators that virtual sports can target the core sports betting customer and help increase underlying revenue.
Price Action: INSE shares are trading higher by 2.90% at $13.12 on the last check Monday.

Market News and Data brought to you by Benzinga APIs