Shares of the UK-based Entain PLC (GB:ENT) soared nearly 9% as of writing after the company confirmed a favourable outlook for the second half of 2024. The company stated that the positive momentum from Q2 has continued. As a result, its online NGR (net gaming revenue) growth in H2 2024 until date has exceeded its forecasts.
Entain is a gaming and sports betting company with popular titles, including Bwin, Ladbrokes, Partypoker, PartyCasino, etc.
Entain Reports Strong Start to H2
Entain reported a strong start to H2 as its online operations in the UK and Ireland experienced year-on-year growth earlier than expected. This was mainly driven by higher volumes and improved margins in sports betting.
Meanwhile, the company’s international and Central and Eastern Europe regions maintained strong momentum. Also, retail performance across the remaining regions remained in line with its expectations.
Overall, the company witnessed gains from major events such as the European soccer championship and Wimbledon. Additionally, the start of the new English Premier League season is expected to draw more bettors. The update came as a relief for Entain investors after regulatory hurdles and intense competition over the past year.
Entain will release its third-quarter update on October 17.
Analysts React to Entain’s Update
Following the update, analysts from Goldman Sachs and Jefferies reiterated their Buy rating on Entain stock.
Analyst James Wheatcroft from Jefferies predicts 64% upside potential in the share price. He mentioned that CEO Gavin Isaacs’ meeting with shareholders with a favourable trading update so early in his tenure sent a positive signal to investors. Isaac joined Entain as CEO on September 2. Jefferies also forecasted that the trading momentum could increase the group’s annual core profit by 1-3%.
Is Entain a Good Stock to Buy?
According to TipRanks consensus, ENT stock has received a Moderate Buy rating, backed by six Buy and four Hold recommendations. The Entain share price prediction is 870.80p, which is 25% higher than the current trading levels.
Year-to-date, ENT stock has fallen by 30%.
