Analyst James Wheatcroft from Jefferies maintained a Buy rating on Playtech and increased the price target to p405.00 from p395.00.
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James Wheatcroft has given his Buy rating due to a combination of factors that highlight Playtech’s strong position and potential for growth. The ongoing momentum in Playtech’s core B2B operations and its 31% stake in Caliente Interactive has led to increased estimates and a raised price target, suggesting a 20% upside to 405p. Despite recent weaknesses in share price, Caliente’s status as a market leader positions it well to handle proposed tax changes in Mexico.
Furthermore, Playtech’s valuation remains attractive, with a headline valuation of 6x EV/EBITDA for FY26E, indicating potential undervaluation. The sum-of-the-parts analysis underscores a value of 690p, with the core business valued at 404p. These factors, combined with raised EBITDA estimates following strong interim results, support Wheatcroft’s positive outlook and Buy rating.