Analysts are upbeat about Entain share price as it trails Flutter

July 07, 2023 10:25 PM AEST | By Invezz

Analysts are upbeat about Entain share price as it trails Flutter — Image source: Invezz

Entain has faced headwinds

Entain is a leading sports betting and gambling company that owns some of the best brands in the industry. The company owns some of the best companies like Ladbrokes, Coral, BetMGM, Bwin, and Eurobet among others. Its other brands are Optibet, SuperSport and FoxyBingo among others.

Entain’s underperformance has been sad to see since the company rejected a $11 billion acquisition bid by MGM in 2021. Today, the company is valued at over 7.7 billion pounds, which is equivalent to $9.81 billion.

Entain has also had several hiccups in the past few months. In May, the company said that it will be hit by a major fine by UK authorities. The fine is mostly because of the company’s misconduct in its Turkish operations.

The main reason why Entain share price has lagged that of Flutter Entertainment is that the latter owns Fanduel, a leading American company. Analysts believe that Fanduel’s valuation has jumped sharply in the past few months.

A good way to value Fanduel is to consider DraftKings, its biggest competitor. DraftKings share price has jumped by more than 94% in the past 12 months and by 40% in the past three months. In November last year, FanDuel was valued at over $22 billion. Flutter, its parent company, on the other hand is valued at over $26 billion.

What next for the Entain share price?

Flutter has also outperformed Entain because of its upcoming US listing. The firm decided to list in the US where Fanduel operates. Another reason is that the company could consider spinning off its Fanduel stake in the coming years.

I still believe that Entain share price will likely continue doing well in the coming months. For one, its BetMGM business is doing well. In the most recent quarter, the company reported a 22% increase in its BetMGM business. Most of this revenue came from the Super Bowl and March Madness event.

Further, Entain’s business is gaining substantial traction internationally. Its active customers jumped by 19% in the first quarter and hit a record high.

Analysts are upbeat about Entain share price. Those at Shore Capital, Jefferies, JP Morgan, Berenberg, and Numis Securities have a bullish outlook of the stock. Numis Securities analysts expect the shares will jump to 1,900p, a 57% upside from the current level.

The post Analysts are upbeat about Entain share price as it trails Flutter appeared first on Invezz.

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