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Super Group (SGHC) stock snapshot

Super Group (SGHC) (NYSE:SGHC) has drawn investor attention after recent share price moves, with the stock down 2.4% on the day and 7.8% over the past week.

That short term weakness comes alongside a mixed recent pattern, with the stock down 3.4% over the past month but up over the past 3 months and higher on a year to date and 1 year basis.

See our latest analysis for Super Group (SGHC).

Recent share price weakness, including a 2.43% 1 day decline and 7.85% 7 day decline, sits against a stronger backdrop. There has been a 12.98% 90 day share price return and a 1 year total shareholder return of 48.59%, suggesting momentum has cooled after a strong run.

If Super Group (SGHC) has you looking at where else capital is moving in the market, it could be a good time to scan for 20 cryptocurrency and blockchain stocks

With Super Group (SGHC) trading at $12.45, alongside reported annual revenue of $2,326.0 and net income of $245.0, plus a value score of 5, is the stock on sale or already pricing in future growth?

Most Popular Narrative: 28.3% Undervalued

At a last close of $12.45 versus a narrative fair value of $17.38, the current price sits well below what this widely followed view implies, and that gap rests on some clear growth and profitability assumptions.

The analysts have a consensus price target of $17.38 for Super Group (SGHC) based on their expectations of its future earnings growth, profit margins and other risk factors.

However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $20.0, and the most bearish reporting a price target of just $16.0.

Read the complete narrative.

Curious what underpins that gap between price and fair value? The narrative leans on faster earnings growth, rising margins and a richer future profit multiple. The exact mix of those inputs is what really matters.

Result: Fair Value of $17.38 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, this upbeat story can crack if regulatory pressure tightens in key regions or if rising marketing and technology spend does not translate into profitable growth.

Find out about the key risks to this Super Group (SGHC) narrative.

Next Steps

With sentiment clearly mixed, the key question is how you weigh the upside against the risks before the picture changes again. For more detail, take a look at the full breakdown of 4 key rewards and 2 important warning signs