Entain (ENT)

Sector:

Tourism and Leisure Services

Index:

FTSE 100

745.00p
   
  • Change Today:
    -29.80p
  • 52 Week High: 1,018.50p
  • 52 Week Low: 503.60p
  • Currency: UK Pounds
  • Shares Issued: 639.30m
  • Volume: 3,816,147
  • Market Cap: £4,762.80m
  • RiskGrade: 260

JPMorgan upgrades Flutter Entertainment to 'overweight'

By Michele Maatouk

Date: Wednesday 13 Mar 2024

LONDON (ShareCast) - (Sharecast News) - JPMorgan Cazenove lifted its stance on Flutter Entertainment on Wednesday to 'overweight' from 'neutral' and hiked the price target to 21,300p from 16,300p.
The bank said the upgrade was driven mainly by its more positive stance on the US, for which it has increased its revenue and EBITDA estimates by double digit percentages in FY 26 onwards.

This is driven in part by a larger total addressable market (TAM) forecast. JPM said that with US legalisation coming through state by state, it now feels increasingly confident about the TAM opportunity crystallising.

JPM also pointed to further market share gains, including within iGaming, which remains underappreciated by the market, and higher margin assumptions, largely underpinned by scale.

The bank said Flutter's market leadership across key geographies, underpinned by its strong moat - leading product, scale, brand - puts it in a favourable spot to capture growth opportunities across markets, while keeping it well-positioned to efficiently tackle regulatory headwinds.

"As a result, the growth profile is appealing, with EBITDA CAGR FY 23-26e at more than 25% as US profitability ramps up," it said.

"Its sound circa 60% free cash flow conversion and de-risked balance sheet (circa2x ND/EBITDA) separately allows for near-term capital returns/M&A, further adding to the equity story," it said.

"Overall, we believe that 2023 provided further evidence of FanDuel's strong positioning in an increasingly promising US market, demonstrating leaps of progress and the resilience of the business model, as confirmed at the Q4 update in Jan...which should drive further upside potential for the shares.

"This comes at a time when the US primary listing will likely broaden the reach of the investor base for the company (end H1/early H2)."

JPM said within its global research coverage of online gaming, US analyst Joseph Greff also sees meaningful upside at Draftkings, which is rated 'overweight'.

At 0930 GMT, Flutter shares were up 1.6% at 17,485p.

JPM also said in its daily equity research note that it had downgraded Ladbrokes owner Entain to 'neutral' from 'overweight' and cut the price target to 910p from 1,280p. It cited limited visibility over the path to recovery.

Email this article to a friend

or share it with one of these popular networks:


Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Entain Market Data

Currency UK Pounds
Share Price 745.00p
Change Today -29.80p
% Change -3.85 %
52 Week High 1,018.50p
52 Week Low 503.60p
Volume 3,816,147
Shares Issued 639.30m
Market Cap £4,762.80m
RiskGrade 260

Entain Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
11.75% below the market average11.75% below the market average11.75% below the market average11.75% below the market average11.75% below the market average
29.41% below the sector average29.41% below the sector average29.41% below the sector average29.41% below the sector average29.41% below the sector average
Price Trend
75.43% above the market average75.43% above the market average75.43% above the market average75.43% above the market average75.43% above the market average
66.04% below the sector average66.04% below the sector average66.04% below the sector average66.04% below the sector average66.04% below the sector average
Income
33.07% below the market average33.07% below the market average33.07% below the market average33.07% below the market average33.07% below the market average
22.22% below the sector average22.22% below the sector average22.22% below the sector average22.22% below the sector average22.22% below the sector average
Growth
77.91% above the market average77.91% above the market average77.91% above the market average77.91% above the market average77.91% above the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average

What The Brokers Say

Strong Buy 6
Buy 6
Neutral 6
Sell 1
Strong Sell 0
Total 19
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Entain Dividends

  Latest Previous
  Interim 2nd Interim
Ex-Div 15-Aug-24 14-Mar-24
Paid 20-Sep-24 26-Apr-24
Amount 9.30p 8.90p

Trades for 31-Oct-2024

Time Volume / Share Price
18:01 1,202,378 @ 764.00p
17:33 132,317 @ 766.79p
17:33 219,104 @ 766.79p
17:33 19,696 @ 766.79p
17:33 145,049 @ 766.79p

Entain Key Personnel

CFO Rob Wood
Chair Stella David
CEO Gavin Isaacs

Top of Page