Entain, owner of bookmakers Coral, Ladbrokes and Bwin, is a buy for UBS, which has started coverage with a price target of 1,770p.
US online sportsbook joint venture BetMGM underpins the Swiss Bank's bullish view, with the broker predicting it will “triple revenues by 2025 and turn profitable by 2023”.
The UK businesses are also better placed than peers to withstand the regulation risk due to the recreational customer base, implementation of tighter checks on affordability and recent market share gains, though the potential £2 online slot limit might impact earnings by 3%.
UBS predicts medium-term growth of 7% online due to current exposure to regulated markets, exposure to younger high-growth markets and a “strong track record of double-digit growth and market outperformance.”
Shares in Entain rose by 3% to 1,342p.