Entain plc: Buy Rating Affirmed Amidst BetMGM Upgrade and Undervalued Assets

James Wheatcroft, an analyst from Jefferies, maintained the Buy rating on Entain plc (ENT – Research Report). The associated price target remains the same with p1,140.00.

James Wheatcroft has given his Buy rating due to a combination of factors that signal strong future performance for Entain plc. One of the primary reasons is the early upgrade for BetMGM, which reflects a robust confidence in the fiscal year 2025 expectations. The new guidance from BetMGM suggests a significant earnings per share upgrade for Entain, highlighting the potential for substantial financial growth.
Additionally, Entain’s current trading valuation seems to undervalue its stake in BetMGM, despite positive updates and projections. The sum-of-the-parts analysis indicates a higher valuation potential, suggesting that the market is not fully recognizing the value of Entain’s assets. This discrepancy between current valuation and potential value supports the Buy rating, as it presents an opportunity for investors to capitalize on the anticipated growth and improved financial performance.

Based on the recent corporate insider activity of 6 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ENT in relation to earlier this year.