Evolution Gaming Group AB, the Services sector company, was revisited by a Wall Street analyst today. Analyst James Wheatcroft from Jefferies downgraded the rating on the stock to a Hold and gave it a SEK630.00 price target.
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James Wheatcroft’s rating is based on several considerations, primarily the legal uncertainties surrounding Evolution Gaming Group AB due to its ongoing dispute with Playtech in the US. This legal issue introduces a significant level of unpredictability regarding the company’s future performance, prompting a more cautious approach.
Furthermore, the decision to adjust the asset beta reflects the potential variability in the lawsuit’s outcomes, which could impact the company’s valuation. Consequently, the price target has been revised to SEK630, aligning it with the current market price, leading to the Hold recommendation.