Deutsche Bank cuts FDJ United price target to EUR36 from EUR42

Published 29/04/2025, 11:32
Deutsche Bank cuts FDJ United price target to EUR36 from EUR42

On Tuesday, Deutsche Bank (ETR:DBKGn)’s analyst Simon Davies revised the price target for FDJ United (FDJ:FP) shares, reducing it to €36.00, down from the previous €42.00. Despite this change, the analyst maintained a Buy rating on the stock.

FDJ United kicked off the online gaming sector’s earnings season with first-quarter results that Davies described as "solid if unspectacular." The company reported a headline revenue growth of 30%, which was primarily attributed to its recent €2.5 billion acquisition of Kindred. Without this acquisition, FDJ United would have seen a like-for-like (LFL) group revenue decline of 1%.

The lottery segment of FDJ United showed a robust performance, with revenue increasing by 5%. However, the company’s online revenues took a 10% hit, influenced by stricter regulations in the Netherlands and the UK. The integration of Kindred’s 32Red business is reportedly off to a good start, with customer migration to FDJ’s technology platform commencing at the beginning of 2025.

The analyst pointed out that the UK operations of FDJ United suffered significantly due to increased affordability checks. Although the company is expected to overcome the heightened regulatory costs in the UK by the end of the third quarter, it still anticipates facing two more quarters of challenging comparisons in the UK market.

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