Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
Deutsche Bank (ETR:DBKGn) increased its price target on Entain PLC (ENT:LN) (OTC:GMVHF) to GBP11.22 from GBP9.58 on Monday, while maintaining a Buy rating on the gambling company’s stock. The price target adjustment represents a 17% increase from the previous valuation.
The upgrade follows Entain’s confirmation of continued strong trading from its betMGM joint venture in the United States, with performance exceeding expectations in both iGaming and sports betting segments. The betMGM operation delivered 34% revenue growth in Q1 2025 and is maintaining a similar growth trajectory through Q2.
Deutsche Bank noted that betMGM appears to have overcome previous challenges after experiencing unfavorable sporting results throughout the second half of 2024. The firm emphasized that the current performance improvement extends beyond temporary favorable betting outcomes.
Sports betting margins in Q2 have been broadly in line with expectations, according to Deutsche Bank’s analysis, indicating the sustainability of the current growth trend rather than just a fortunate run of sporting results.
The betMGM joint venture represents a significant component of Entain’s business portfolio, with its U.S. market performance becoming increasingly important to the company’s overall valuation and growth prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.