In a report released today, Ed Young from Morgan Stanley maintained a Buy rating on Entain plc (ENT – Research Report), with a price target of p1,050.00.
Ed Young has given his Buy rating due to a combination of factors that highlight Entain plc’s strong operational performance and promising future prospects. Throughout FY24, Entain demonstrated improved operational efficiency, particularly in its Online division, with significant growth observed in key markets such as the UK and Brazil. The company’s EBITDA for FY24 reached the upper end of its guidance range, slightly surpassing consensus expectations, which underscores its robust performance.
Additionally, Ed Young notes that current trading conditions remain strong, with volumes aligning with expectations and favorable sports results supporting the FY25 EBITDA consensus of approximately £1,110m. Despite a conservative outlook on online revenue growth for FY25, attributed to external factors like sports margin comparisons, the overall positive trajectory and clarity on BetMGM prospects, coupled with a favorable valuation, contribute to the Buy rating. These elements suggest a solid foundation for Entain’s continued growth and operational success.
In another report released today, Jefferies also maintained a Buy rating on the stock with a p1,140.00 price target.