Morgan Stanley analyst Ed Young maintained a Buy rating on Entain plc today and set a price target of p1,310.00.
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Ed Young’s rating is based on several positive indicators for Entain plc. Despite the transition in the CFO position, which introduces some uncertainty, the company’s fundamentals remain strong. The online segment is experiencing solid growth, and BetMGM is showing positive momentum. Additionally, Project Romer is nearing completion, and the company’s FY25 trading aligns with current consensus expectations, with an EBITDA of £1,139 million.
While the departure of a long-serving CFO might raise concerns about the loss of sector-specific experience, the existing management team is well-equipped to handle future challenges. The CEO has been involved with Entain since March 2021, and the company can rely on experienced leadership in key roles such as the UK Managing Director and CTO. These factors contribute to a positive outlook for Entain, justifying the Buy rating.
In another report released today, Jefferies also maintained a Buy rating on the stock with a p1,200.00 price target.