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(Sharecast News) - JPMorgan Cazenove upgraded Ladbrokes owner Entain on Tuesday and downgraded 888 Holdings as it took a look at the onling gaming sector.
The bank upgraded Entain to 'overweight' from 'neutral' and lifted the price target to 1,852p from 1,628p given that its non-US assets now trade at a discount to 888, and a substantial discount to those of neutral-rated Flutter Entertainment, while it still offers optionality should JPM's US total addressable market prove conservative (TAM).
"Our US TAM of $14bn in 2025E (versus circa $3-4bn in 2020) would suggest US valuations of c£12bn for Flutter and c£3bn for Entain (50% of BetMGM), and would imply their non-US assets are trading on 14.4x and 9.6x 2021E EBITDA, respectively, vs 11.2x for 888, a digital pureplay.
"If Flutter and Entain are correct in their suggestion of a c$20bn US TAM, then we estimate that Entain would offer 36% upside and Flutter 21% - Flutter's non-US assets would continue to trade on a small premium to 888 (ex-US losses)."
The bank downgraded 888 to 'neutral' from 'overweight' after the share price reached its target price following substantial outperformance.
30 Jan 2023 09:50
UPDATE: 888 CFO to stay longer as CEO leaves amid Middle East probe
(Alliance News) - 888 Holdings PLC on Monday said Chief Financial Officer Yariv Dafna will now stay in the post until the end of 2023, while the bookmaker's chief executive has left the company suddenly.
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