Goldman Sachs analyst Ben Andrews upgraded the rating on Entain plc (ENT – Research Report) to a Buy today, setting a price target of p1,020.00.
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Ben Andrews has given his Buy rating due to a combination of factors that suggest a positive outlook for Entain plc. The company’s online segment has shown strong momentum, exceeding growth expectations over the last three quarters, which indicates a successful turnaround. Additionally, BetMGM’s strategic adjustments and recent trading performance have bolstered confidence in its profitability prospects, suggesting it can deliver substantial cash returns.
Furthermore, the resolution of key uncertainties, such as the appointment of a permanent CEO, has contributed to a more favorable risk/reward profile for Entain. Despite recent stock movements, Entain’s shares are still undervalued compared to peers and historical levels, particularly considering BetMGM’s potential. These developments support a projected double-digit increase in consensus earnings per share, leading to an upgraded price target of 1,020p.
Andrews covers the Consumer Cyclical sector, focusing on stocks such as WH Smith, Entain plc, and Lottomatica Group S.P.A.. According to TipRanks, Andrews has an average return of 12.0% and a 59.57% success rate on recommended stocks.
In another report released on June 18, HSBC also maintained a Buy rating on the stock with a £9.49 price target.