Benzinga | Sep 27, 2021 09:44AM EDT

Analysts See Up To 71% Upside In DoubleDown Interactive - Read Why

* Two analysts initiated coverage on DoubleDown Interactive (NASDAQ:DDI).

* B. Riley analyst David Bain initiated coverage with a Buy rating and $30 price target, implying a 71.14% upside.

* The shares do not yet reflect DoubleDown's "highly predictable and consistently growing" revenue and free cash flow, anchored by its "unique content, best-in-class data-based analytics, and real-time marketing" in its core online social casino business.

* Bain sees potential upside from robust core industry growth, new game category introductions, and unmodeled margin expansion from reduced platform payment fees.

* Northland analyst Greg Gibas initiated coverage with an Outperform rating and $25 price target, indicating a 42.6% upside.

* He likes what he views as DoubleDown's "superior monetization and retention metrics" among its mobile game peers, as well as its consistent ability to attract new players and develop engaging new content.

* He also has a favorable view of the company's current valuation.

* Price Action: DDI shares traded higher by 0.40% at $17.6 on the last check Monday.