Another big investment bank has boosted its backing for bookmaker Entain PLC (LSE:ENT) after the update on US joint venture BetMGM earlier this week.
Deutsche Bank hiked its target price to 1122p from 958p and reiterated its 'buy' rating after the FTSE 100 confirmed continued strong trading at the US JV with MGM International.
Trading was "comfortably ahead" of expectations across both iGaming and sports betting, analyst Simon Davies said.
"After taking some big hits from unfavourable sporting results through H2 2024, Entain's betMGM JV appears to have turned a corner."
The trading update showed 34% revenue growth in the first quarter of 2025, with management expecting a similar growth run-rate through the second quarter.
"Importantly, this is not just a factor of a run of sporting luck," the analyst added, noting that sportsbook margins in Q2 have been broadly in line with expectations too.
As a result, BetMGM expects to generate EBITDA of at least $100 million for the full year, a big upgrade from its previous indication that it would be just "EBITDA positive".
It comes a day after Citi reiterated its ‘buy’ rating on Entain and reiterated its 1,250p price target.
On Wednesday afternoon, the shares were up 2.4% at 857.8p, around 15-month highs.