Entain: Undemanding Valuation with EBITDA Outperformance and Up to 90% Upside Potential

In a report released today, James Wheatcroft from Jefferies maintained a Buy rating on Entain plc, with a price target of p1,000.00.

James Wheatcroft has given his Buy rating due to a combination of factors, notably Entain’s FY25 EBITDA coming in modestly ahead of market forecasts even after a tough fourth quarter for margins. He also highlights that the newly issued FY26 EBITDA outlook is broadly consistent with current expectations, while the company’s implied FY27 earnings point to further upside as UK tax mitigation begins to add materially to profits.

Wheatcroft emphasises reiterated guidance on strong cash generation by FY28 and confirms that BetMGM’s trajectory remains intact, preserving strategic optionality despite recent management changes and UK tax uncertainty. With the shares valued at about 7x FY26 EV/EBITDA and his sum‑of‑the‑parts analysis indicating around 90% potential upside to a £10.60 target, he views the current valuation as undemanding relative to Entain’s growth, margin recovery and regulatory tailwinds.

In another report released on March 3, Susquehanna also reiterated a Buy rating on the stock with a £11.00 price target.