Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guides
Guidance and tools
Shares
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks Stock plan guidance
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
More forecast upgrades possible at Entain, says Shore Capital
(Sharecast News) - Shore Capital has kept a 'buy' rating on Entain following the company's raised guidance for its BetMGM operations, suggesting that there could be more upgrades to come at the sports betting and gambling group. The company, which owns a 50% share of the US joint venture BetMGM with MGM Resorts, said net revenue growth (NGR) in the second quarter so far was consistent with the 34% year-on-year surge seen in the first three months of the year.
As a result, BetMGM revenues are now expected to be "at least $2.6bn", up from the previous $2.4bn-2.5bn range, and EBITDA is forecast to be "at least $100m", compared with earlier guidance of above breakeven.
Shore Capital said that, after such a strong first quarter, an upgrade to full-year NGR was to be expected, and while comparatives get tougher in the second half, "a beat to the $2.6bn is likely".
Entain said the trading momentum at BetMGM reinforces its confidence in future growth prospects and its $500m EBITDA target for the division in the coming years - something that Shore Capital said isn't yet reflected in the current share price.
"Entain trades on a current year PER of 15x and an EV/EBITDA of c7.5x excluding BetMGM. Valuing BetMGM at c2-3x NGR would value "core" Entain on a single-digit PER. The current valuation failing to reflect the improving trends at both "core" Entain and its 50% stake in BetMGM. BUY," the broker said.
Entain shares were up 13.6% at 853.2p by 1449 BST.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Diversity, Equity & Inclusion Reports | Doing Business with Fidelity | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing programme
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.
