James Wheatcroft, an analyst from Jefferies, reiterated the Hold rating on Better Collective A/S (BETCO – Research Report). The associated price target is SEK120.00.
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James Wheatcroft has given his Hold rating due to a combination of factors including Better Collective’s mixed financial performance and market uncertainties. The company’s revenue exceeded expectations by 5%, but EBITDA fell short by 8%, which suggests some operational challenges. Despite a promising start in Brazil with stronger-than-expected player migration and wagering activity, the North American market faced difficulties, with revenues dropping by 32% due to a tough comparison with the North Carolina launch and reduced marketing spend by operators.
Additionally, the European and Rest of World markets experienced a slight decline, which further influenced the Hold rating. The reiteration of the FY25E guidance, supported by anticipated cost savings and a new share buyback program, provides some optimism. However, the overall valuation at 8.2x EV/EBITDA for FY25E remains low, and the medium-term guidance revisions along with uncertainties in key markets contribute to a cautious outlook.