Entain: BetMGM Headwinds Overpriced as SOTP Valuation Signals ~80% Upside to £10 Target

In a report released today, James Wheatcroft from Jefferies maintained a Buy rating on Entain plc, with a price target of p1,000.00.

James Wheatcroft has given his Buy rating due to a combination of factors, despite the softer near‑term BetMGM update. While BetMGM’s latest quarterly revenue growth was slightly below Jefferies’ forecast and management has nudged guidance to the lower end of the prior EBITDA range, the impact on Entain’s earnings per share is modest and the long‑term $500m FY27 EBITDA ambition for BetMGM remains intact.

Wheatcroft also highlights that at Entain’s current valuation of around 7.0x FY26E EV/EBITDA, the market is effectively assigning no value to BetMGM, which he views as overly conservative. His sum‑of‑the‑parts analysis indicates around 80% potential upside to a £10.00 share price, underpinned in part by Entain’s enhanced technology platform that could support a more independent BetMGM structure over time, reinforcing his positive stance on the shares.

In another report released on April 10, Morgan Stanley also maintained a Buy rating on the stock with a $0.00 price target.