In a report released today, James Wheatcroft from Jefferies maintained a Buy rating on 888 Holdings (EVOK – Research Report), with a price target of p140.00.
James Wheatcroft has given his Buy rating due to a combination of factors that highlight the positive outlook for 888 Holdings. The company’s recent performance has slightly exceeded market expectations, with revenue and EBITDA margin figures showing strength, particularly in the second half of the fiscal year. This performance has reinforced confidence in the company’s ability to meet its annual guidance of 5-9% revenue growth and a 20% margin.
Furthermore, despite some initial setbacks in the first quarter due to one-off factors, the company has plans in place, such as product roadmap enhancements and retail improvements, to counterbalance these challenges. Additionally, 888 Holdings is making significant strides in reducing its leverage, with a target to bring it down to 3.5x by FY27E. The current valuation appears attractive, with a potential for substantial equity upside as leverage decreases, making the stock an appealing investment opportunity.
According to TipRanks, Wheatcroft is ranked #2319 out of 9407 analysts.