Latest News

Flutter downgraded by Peel Hunt on strong share price performance, GVC and 888 targets hiked as brok


Flutter Entertainment PLC (LON:FLTR) has been downgraded to ‘reduce’ from ‘hold’ by analysts at Peel Hunt following what the broker said was a “recent strong performance” in the shares.

In a note on Tuesday, the broker also reiterated its 12,600p target price on the Paddy Power owner, highlighting that if the company’s 58%-owned US business can achieve a 27% market share in the country it could result in earnings (EBITDA) of US$664mln.

READ: Flutter moved to sector perform by RBC following strong share price run, William Hill target cut to Caesars bid price

In a separate note, Peel Hunt revisited its forecasts for other London-listed gambling firms exposed to the US sports betting and online gaming market and concluded that both Ladbrokes owner GVC Holdings PLC (LON:GVC) and 888 Holdings PLC (LON:888) were “undervalued” than previously thought. As a result, Peel Hunt raised its target for GVC to 1,600p from 1,200p and retained a ‘buy’ rating, while 888 was also kept at ‘buy’ while its target was lifted to 350p from 300p.

“It is clear that the US market is growing rapidly, both on a [like-for-like] basis within states, and as a result of new states regulating sports betting and, in some cases, online gaming”, Peel Hunt said, highlighting that despite disruption from coronavirus, gross revenue from the US was up 99% year-on-year in the year to September.

“US sports betting and online gaming gross revenue is growing quickly, and companies with a share of that revenue are attracting high valuations”, the broker continued, although they added that investors will “have to take a lot on trust” as state-level revenue figures were “telling only a partial story about growth, and individual company accounts muddled by investments to drive growth in hope of winning a profitable market share later”.

Shares in Flutter were down 5.8% to 12,610p in mid-morning trading, while GVC rose 1.1% to 987.4p and 888 fell 0.3% to 250.4p.

Tavistock Investments grows profits as cost-saving initiatives bear fruit

Previous article

City Pub Group appoints Toby Smith to its board in the newly created role of chief operating officer

Next article

You may also like


Leave a reply

Your email address will not be published.

More in Latest News