Independent equities analysts at Shore Capital Markets have reiterated sports betting and gambling blue chip Entain Group plc’s buy rating, citing an attractive 10x price-to-earning ratio and an unwinding of recent headwinds that stunted growth rates at the end of 2022.
“The market would appear to be giving little credence to the long-term structural opportunities of the global gambling industry, especially in the US,” said Shore Cap.
Analysts noted evidence of accelerating revenue growth, the joint venture with BetMGM moving into profitability, and the associated improvement in free cash flows as positives.
It’s “all about the exit growth rate” when looking past 2023, when regulatory headwinds across the UK Germany and the Netherlands begin to subside.
Acquisitions over the last year, including Avid Gaming in Canada, BetCity in the Netherlands and Super Sports in Central Europe set the stage for an added 10% to net gaming revenue.
Shore Cap sees a fair market value of 2,000p per share against a publication price of 1,297p.