Shares in Entain PLC (LSE:ENT) slipped 2% to 1,075p on the back of a target price cut by Deutsche Bank, following yesterday's first-half results where it warned on profit.
Deutsche maintained its Buy rating, but analysts clawed back the target price from 2,034p to 1,871p for the gambling and betting company.
Online revenues were below expectations, although this was somewhat offset by a stronger recovery in retail which meant second-quarter results were “broadly in line” with its expectations.
Notably, the bank pointed to management comments on the current macro-conditions which is “reducing customers’ rate of spend.”
As a result, revenues are expected to be flat for the financial year, below analysts’ predictions of a 2.3% increase.
Other forecasts, such as underlying earnings (EBITDA) have also been reduced, alongside a host of reductions previously due to other headwinds.
As well as that, the upcoming Gambling Act review, which has been delayed, postpones regulatory clarity for the market according to Deutsche.
There could also be some “downside protection from potential bid interest, most obviously joint venture partner MGM.”