Flutter Entertainment has been under pressure following a flurry of negative headlines, but the weakness in the share price is too much suggests JP Morgan which has kept an an upbeat view.
Shares in the Fanduel and Betfair owner are down 15% on tax increases, college bets ban, marketing restrictions in the US and some overall weakness within Travel & Leisure.
JP Morgan adds that while some regulatory headwinds were expected, "their cadence and magnitude (especially on the US tax front) has caught the market by surprise".
But the bank has Flutter as its top gaming pick and "given a reasonable degree of risk related to tax increases now baked in, the larger groups like Fanduel should be better equipped to mitigate the impact and further consolidate their positions".
“All in all, we believe FanDuel is among the best positioned in a very appealing sector with attractive growth prospects at a time when it can further leverage its scale.”
Shares rose 0.4% to 14,520p against JP Morgan’s 20,700p target and 'overweight' stance.