Analyst James Wheatcroft from Jefferies maintained a Buy rating on Entain plc (ENT – Research Report) and keeping the price target at p1,140.00.
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James Wheatcroft has given his Buy rating due to a combination of factors influencing Entain plc’s potential. Despite recent leadership changes with the resignation of CEO Gavin Isaacs, the company is expected to maintain its strategic direction under interim CEO Stella David, who has previously held this role successfully. This stability is likely to reassure investors during this transitional period.
Furthermore, Entain has consistently met or exceeded market expectations and has confirmed its comfort with the consensus forecasts for the fiscal year 2025. The stock is currently trading at a relatively attractive valuation of 8.4 times EV/EBITDA for FY25E. Wheatcroft’s sum-of-the-parts analysis suggests significant upside potential, estimating a valuation of £14.00 per share, which implies roughly 100% potential upside. This valuation incorporates a conservative discount when compared to industry peers, particularly for its BetMGM stake and its online and retail operations.
In another report released on February 5, Citi also maintained a Buy rating on the stock with a £10.50 price target.