Shares of GAN Limited (NASDAQ:GAN) jumped as much as 10.3% in trading Monday after an analyst released a positive note about the company. Shares were still up by 9.1% as of 2:52 p.m. EDT.
Analyst Josh Nichols at B. Riley FBR reiterated a buy rating for GAN Limited stock and a $28.50 price target for shares. He said a positive second quarter for DraftKings (NASDAQ:DKNG) was a bullish sign for GAN Limited, which could be a software provider for others looking to move into the online gambling space.
GAN also launched real money internet gambling in Pennsylvania for Cordish Gaming Group Monday. The company's PlayLive! brand is powered by GAN and is a precursor to physical gambling facilities in Pittsburgh and Philadelphia due to open in the next year.
Investors continue to speculate that online gambling will expand at a rate that will lead to tremendous growth for every company involved. That may not be the case because the market is already flooded with dozens of suppliers. But GAN Limited is uniquely positioned to provide a platform casino operators can use easily to launch their own online gambling platforms. That could keep GAN growing, and may make it one of the best investments for those looking to profit from the industry over the long term.