Peel Hunt - Reiterated ‘buy’ recommendation and target price of 110p29 Oct 2025 12:15
The share price of Evoke, previously 888 Holdings, is pricing in too much Budget pessimism, says Peel Hunt.
Analyst Ivor Jones reiterated his ‘buy’ recommendation and target price of 110p on the gambling group and owner of William Hill, which was trading down 0.36%, or 0.15p, at 41p at the time of writing and has fallen nearly a third this year.
A third quarter update from the group indicated it is on track to beat earnings forecasts as its ‘turnaround plan [is] executed with vigour’, said Jones.
Both betting and gaming revenues were up 6% year-on-year in the third quarter, with the latter benefiting from investment in new gaming machines.
The upcoming Budget continues to cast a shadow over the group, but Jones said he ‘hopes HM Treasury will want not to decrease tax revenue and will leave the sector alone, but downside risks are material’.
‘We believe that material increases in gaming duties would lower HM Treasury duty income and cost jobs,’ he said.
‘With an optimistic view of the UK Budget, and a belief that Evoke’s share price reflects too much pessimism, we reiterate our ‘buy’ recommendation.’