Analysts at UBS have readjusted their guidance on Ladbrokes and Coral-owner Entain PLC (LSE:ENT) following last week’s tepid trading update.
In that update, Entain warned online gaming revenue has been softer than expected, hit by adverse sporting results during September and ongoing regulatory headwinds.
Though UBS maintained a 'buy' rating, the bank revised its price target from 1,720p down to 1,620p, representing a 71% premium to Entain’s current spot price of 945.6p.
UBS also cut group revenue and underlying earnings targets by 3-4% to reflect slower growth in online sales.
Entain plans to unveil a strategic update on 2 November, which is expected to discuss a simplified group structure, moving new acquisitions onto its technology platform and progress on delivering its online EBITDA margin target of 30%.
Analysts are likely to revisit their Entain targets following this update.