Analysts at Peel Hunt have retained their 'buy' rating on 888 Holdings PLC (LSE:888) following an update ahead of the company's Capital Markets Day (CMD) being held on Tuesday.
The analysts noted: "Based on today’s statement we are leaving our FY22E forecasts unchanged: management is guiding to 'pro forma revenue of approximately £1.85bn and adjusted EBITDA in the range of £305-315mln', in line with our forecasts."
"However," they added, "it has increased synergy targets and brought their delivery forward: £87mln of operating cost synergies for FY23E (up from £54mln), out of new total of £116mln (up from £85mln)."
The Peel Hunt analysts said they have kept their full-year 2023 EPS forecast unchanged but, ahead of more detailed guidance, they upgrade their full-year 2025 EPS forecast by 22% to 36.4p, consistent with the company's published today of 'at least 35p'.
They noted: "Management is realistic about the challenges it has faced since announcing the acquisition. But today it explains how it plans to overcome them, with a unified tech platform, and operations, and rationalised brands."
The analysts concluded: "There are risks, but on an FY23E PE of 7.3x we are confident the shares are a Buy, and reiterate our 210p target price."
In afternoon trading on Tuesday, 888 Holdings shares were changing hands for 101.10p.