Berenberg says US opportunity in 888 undervalued
Analysts at Berenberg reiterated their 'buy' recommendation for shares of 888 Holdings, arguing that prospects for the online gambling group in the US remained undervalued.
888 Holdings (DI)
19 April 2024 17:22:04
Source: Sharecast
That was especially so following 888's decision to launch its Sports Illustrated sportsbook in Colorado, which they said improved the two key core competencies needed to succeed in that market - brand power and access to customers.
Hence, they raised their expectations for market share in 50% of the US from 3% to 4%.
In turn, that raised the value per share attributable to the US opportunity from 60.0p to 70.0p.
As well, on the back of the company's improved guidance, they raised their estimates for 888's revenues and earnings before interest, taxes, depreciation and amortisation in 2021 by approximately 3% and 2.6% for the the 2021 financial year, respectively.
For subsequent years, they raised their EBITDA estimates by 2.6%.
Berenberg also labelled the company's latest interims "robust"m highlighting its "strong" top-line growth and focus on product and technology.
The broker kept its recommendation for the shares at 'buy' while bumping up its target price from 460.0p to 470.0p.