Shares in 888 Holdings PLC were in the winners' enclosure on Thursday, up 4.3% to 130.32p, as analysts at Berenberg tipped them for further progress.
The betting operator, which owns William Hill, has been plagued by a number of issues so far in 2023 and reported first-half revenue and EBITDA below expectations earlier this month.
The broker highlighted performance in the retail channel was encouraging, although its online performance was softer than anticipated.
Synergies of £150 million are now expected to be delivered in 2024, which is a year earlier than anticipated, and the group reduced leverage to 5.1x, “providing us with further confidence in 888’s ability to meet its FY25 leverage target”.
“These factors, aided by the appointment of a CEO with a proven track record, provide us with further confidence in 888’s ability to deliver a continued reduction in leverage,” Berenberg said.
Per Widerström was recently appointed CEO and the announcement of a new CFO is expected shortly.
“With everything considered, we reiterate our buy rating and our price target of 190p,” the bank added.