William Hill PLC (LON:WMH) was upped to ‘buy’ from ‘hold’ by Deutsche Bank as analysts see a clear upside in the US operations.
The bookmaker is expected to report material interim losses in Wednesday’s results, while the German bank sees modest downward pressure on consensus forecasts for financial year 2020 and particularly 2021, primarily driven by US start-up losses.
READ: JP Morgan upgrades William Hill after placing boost
The stock tumbled 25% since the £224mln share placing announced in June and is now trading 19% below the placing price.
“We see this as a response to a combination of post-placing indigestion, a note of caution on the US market opportunity and most significantly, the anticipation of what will be a particularly weak set of interim results,” analysts commented, reiterating the 140p target price.
Shares added 4% to 113.32p on Tuesday morning.
