In a report released today, James Wheatcroft from Jefferies downgraded Playtech to a Hold, with a price target of p240.00.
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James Wheatcroft’s rating is based on several factors, primarily focusing on the legal uncertainties surrounding Playtech. The ongoing legal dispute between Playtech and Evolution in the US has introduced a level of unpredictability that impacts the company’s valuation. Consequently, the price target has been adjusted downward to 240p, reflecting an increased asset beta due to these uncertainties and the broad spectrum of possible outcomes from the lawsuit.
Wheatcroft’s decision to downgrade the stock to a Hold rating also aligns with a similar review of Evolution’s price target, which has been similarly lowered. This cautious stance indicates a neutral position, acknowledging the potential risks without taking a definitive stance on the legal proceedings’ outcome, as the firm does not provide legal opinions.