Entain stock rating upgraded to Buy by BofA on BetMGM confidence

Published 08/07/2025, 08:44
Entain stock rating upgraded to Buy by BofA on BetMGM confidence

Investing.com - BofA Securities upgraded Entain PLC (LON:ENT) from Neutral to Buy and raised its price target to GBP11.00 from GBP8.80, citing increased confidence in the company’s BetMGM joint venture.

The upgrade reflects three key factors: greater confidence in BetMGM operations, positive regulatory developments in New Zealand, and expected free cash flow improvement in 2026, according to BofA Securities.

The research firm highlighted that despite Entain’s year-to-date stock rally, shares still trade at an attractive 8x 2025E EV/EBITDA compared to European peers at 8.5x and U.S. peers at much higher multiples.

BofA Securities noted that Entain offers a 30%+ three-year EPS compound annual growth rate while trading at 18x 2025E P/E, making the valuation compelling relative to growth prospects.

While identifying potential UK tax changes as a risk, BofA Securities does not expect regulatory changes until 2027 at the earliest, and has made minor adjustments to its 2025-2027 earnings per share estimates for the gambling company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.