James Wheatcroft, an analyst from Jefferies, maintained the Buy rating on 888 Holdings. The associated price target remains the same with p110.00.
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James Wheatcroft has given his Buy rating due to a combination of factors that highlight 888 Holdings’ promising financial outlook. The company anticipates surpassing current consensus expectations for EBITDA by FY25, driven by strategic efforts to enhance margins, which have slightly tempered revenue growth. Despite this, the company has maintained a steady growth trajectory, with all divisions showing positive momentum, particularly in the Retail sector and UK&I iGaming contributions.
Furthermore, 888 Holdings has achieved significant cost savings through refinancing, which, coupled with a favorable valuation of 5.6x EV/EBITDA for FY25 and a free cash flow yield of 10.7%, suggests substantial long-term equity potential. The company’s commitment to reducing leverage to below 3.5x by FY27 further supports this optimistic outlook. These factors collectively underpin Wheatcroft’s confidence in the stock’s potential, despite uncertainties such as potential changes in UK gambling taxes.