Back to previous section

Canaccord Genuity raises price target on 888 Holdings following William Hill acquisition

Analysts at Canaccord Genuity hiked their target price on gambling firm 888 Holdings from 510.0p to 690.0p on Thursday, stating the group was now "off to the races".

  • 888 Holdings (DI)
  • 18 April 2024 17:21:19

Source: Sharecast

Canaccord Genuity believes 888's acquisition of William Hill International will be "transformational" in terms of earnings but also strategically.

The Canadian bank, which has a 'buy' rating on the stock, thinks the enlarged group will gain leading positions in key regulated markets as a result of the acquisition, with "a diversified product mix" and "enhanced scale to drive future growth".

Canaccord also said significant cost synergies of at least £100.0m had been identified by 888 across a number of areas, which will help to drive "improved profitability and margins".

"Consolidation has played an important role in the market in recent years and this transaction helps to strengthen 888 competitive position, albeit the increased scale and proprietary tech platform will also likely make it more attractive to a larger industry player looking to participate in further consolidation," said the analysts.

"Acknowledging the increased leverage but also the additional scale and opportunities from the transaction as well as the potential for additional revenue synergies along with ongoing consolidation activity we increase our TP to 690.0p, based on a SOTP approach."

FTSE 250 ( MCX )

Isin: N/A
Exchange: London Stock Exchange
Sell:
0.00
Buy:
0.00
Change: 110.53 ( 0.57 %)
Date:
Prices delayed by at least 15 minutes

Compare our accounts

Whether you're looking for a Share Dealing Account or Share Dealing ISA, we've got an account to suit your needs.

View our accounts

Lloyds Bank is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.

Important legal information

The Lloyds Bank Direct Investments Service is operated by Halifax Share Dealing Limited. Registered Office: Trinity Road, Halifax, West Yorkshire, HX1 2RG. Registered in England and Wales no. 3195646. Halifax Share Dealing Limited is authorised and regulated by the Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN under registration number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.

Logo Allfunds

The information contained within this website is provided by Allfunds Digital, S.L.U. acting through its business division Digital Look Ltd unless otherwise stated. The information is not intended to be advice or a recommendation to buy, sell or hold any of the shares, companies or investment vehicles mentioned, nor is it information meant to be a research recommendation. This is a solution powered by Allfunds Digital, S.L.U. acting through its business division Digital Look Ltd incorporating their prices, data news, charts, fundamentals and investor tools on this site. Terms and conditions apply. Prices and trades are provided by Allfunds Digital, S.L.U. acting through its business division Digital Look Ltd and are delayed by at least 15 minutes.

FE fundinfo Logo

Data provided by FE fundinfo. Care has been taken to ensure that the information is correct, but FE fundinfo neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.

Refinitiv Logo

© 2024 Refinitiv, an LSEG business. All rights reserved.