DoD tests AI models that make it easy to switch from vendors like Palantir
On Tuesday, UBS analyst Ben Shelley upgraded Entain PLC (ENT:LN) (OTC:GMVHF), a prominent player in the gaming and betting industry, from Neutral to Buy, adjusting the price target to GBP9.20, up from the previous GBP8.20. Shelley’s assessment indicates a positive outlook for Entain, highlighting the company’s steady progress in its operational endeavors throughout the past year.
Despite Entain’s advancements, the company’s shares have not reflected this growth, showing an 8% decline in a sector that has otherwise been on the rise. UBS believes that the market has not yet fully recognized Entain’s improvements made through 2024. Looking ahead, the firm anticipates 2025-26 to be a significant period for Entain’s resurgence as it continues to enhance its online business, establishes sustainable profitability with BetMGM, and transitions to free cash flow (FCF) profitability.
Entain currently stands out as the most affordable option among its peers and is poised to offer the highest level of earnings growth relative to its multiple. The company is trading at a roughly 9% FCF yield for the fiscal year 2026, which is a 20% discount compared to its peers. Additionally, it is expected to deliver a more than 20% compound annual growth rate (CAGR) extending to the year 2029 in terms of FCF per share.
Shelley’s commentary suggests that the first half of the year could bring further positive news for Entain. UBS anticipates potential catalysts that may lead to guidance upgrades for both Entain’s online segment and BetMGM, reinforcing the firm’s confidence in the company’s stock performance and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.