BWS Financial initiated coverage of Inspired Entertainment (NASDAQ:INSE) with a Buy rating and a $20 price target, citing the company’s leadership in virtual gaming as a key growth driver in the evolving online gambling market.

As legalization expands across regions, more consumers are shifting from physical casinos to online platforms. Inspired Entertainment is at the forefront of this transformation, offering virtual sports and hybrid dealer solutions that broaden the gaming experience while addressing regulatory complexities around live dealer requirements.

According to BWS, Inspired currently faces no direct competition in the Virtual Sports category, giving the company a first-mover advantage. Hybrid dealers, meanwhile, allow online platforms to comply with rules about the physical location of dealers while still delivering engaging, real-time gaming to users.

With traditional physical gaming slowing, BWS sees Inspired’s innovative digital offerings as a way to offset these challenges. The firm expects the company’s second-quarter results to highlight this transition and act as a catalyst for further growth, supporting its bullish thesis on the stock.