Entain PLC (LSE:ENT) recently received a target price hike to 780p from 680p from UBS ahead of its third quarter numbers on 17 October.
The Swiss bank expects 4.8% pro forma organic revenue growth online and an underlying acceleration from the previous three months.
For the full year, UBS expects 3.6% online revenue growth, which would be at the top end of the company’s guidance, with profits of £1.08 billion, again near the top of guidance.
In the US, joint venture BetMGM is forecast to record 14% NGR growth in its latest quarter, which should be seen as a positive says the bank.
Entain shares have risen 50% since the interim figures but UBS is a little wary about the Budget and any potential tax changes.
“To give a broad idea of quantification, a five percentage point increase in UK online taxation is worth around 4% of group FY25 EBITDA and 26% of adj free cash flow."
'Neutral' is the investment bank's view.