Jefferies analyst James Wheatcroft maintained a Buy rating on Entain plc today and set a price target of 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 potential for growth. The company’s interim results exceeded expectations, with EBITDA coming in 5% ahead of consensus, indicating robust operational performance. Additionally, Entain’s market share recovery in the UK Online sector and significant growth in Brazil further bolster its prospects.
Despite concerns over potential UK tax increases affecting share prices, Entain’s trading multiples suggest undervaluation. The company is trading at 8.7 times EV/EBITDA for FY25E, and Wheatcroft’s sum-of-the-parts valuation implies a potential upside of 50%, with a target price of £14.00. This valuation considers a discount to DraftKings’ multiple and recent transaction multiples in regulated markets, supporting the Buy recommendation.
According to TipRanks, Wheatcroft is a 5-star analyst with an average return of 10.7% and a 53.33% success rate. Wheatcroft covers the Consumer Cyclical sector, focusing on stocks such as Inchcape, Entain plc, and Flutter Entertainment PLC.
In another report released on August 4, Morgan Stanley also maintained a Buy rating on the stock with a £13.00 price target.