James Wheatcroft, an analyst from Jefferies, maintained the Buy rating on Entain plc. The associated price target remains the same with p1,140.00.
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James Wheatcroft has given his Buy rating due to a combination of factors that highlight Entain plc’s strong performance and growth potential. The recent upgrade in BetMGM’s guidance to at least $150 million EBITDA, up from the previous $100 million, underscores the company’s improved product performance and reduced promotional spending. This upgrade is not merely driven by sports margins but reflects a more robust underlying business.
Furthermore, Entain’s impressive metrics, such as a 56% growth in online sports betting and a 29% increase in iGaming, demonstrate the company’s ability to capitalize on market opportunities. With the current valuation not fully reflecting the value of BetMGM, Wheatcroft sees significant upside potential, estimating a 40% increase based on a sum-of-the-parts analysis. These factors collectively justify the Buy rating, indicating confidence in Entain’s strategic direction and financial prospects.
In another report released on July 24, Citi also maintained a Buy rating on the stock with a £13.00 price target.