James Wheatcroft, an analyst from Jefferies, maintained the Buy rating on Entain plc. The associated price target remains the same with p1,200.00.
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James Wheatcroft has given his Buy rating due to a combination of factors that highlight Entain plc’s strong financial performance and growth potential. One of the key reasons is the repeated upward revision of BetMGM’s guidance, which now projects an EBITDA of approximately $200 million, up from the previous estimate of at least $150 million. This upgrade is expected to contribute approximately 3% to Entain’s earnings per share, indicating a positive outlook for the company’s profitability.
Furthermore, the valuation metrics suggest that the current market price does not fully reflect the value of BetMGM, as the enterprise value to EBITDA ratio for the fiscal year 2025 is 8.7x, implying significant upside potential. The strong growth in online sports betting and iGaming, with year-over-year increases of 36% and 21% respectively, further supports the Buy rating. These factors, combined with improved product offerings and customer engagement, underpin Wheatcroft’s optimistic view on Entain’s future prospects.
In another report released yesterday, Citi also maintained a Buy rating on the stock with a £13.50 price target.