- Entain
- 13 May 2025 14:59:40
Source: Sharecast
It said the Ladbrokes owner has been steadily progressing on its key operational frontiers over the past year, yet the shares have underperformed, declining 8% in a rising sector.
"In short, the company is yet to be rewarded for its underlying improvements through 2024," UBS said.
"We see 2025-26 as a catalytic ‘come back’ period as Entain continues to deliver in its online business, proves out sustainable profitability in BetMGM and inflects to free cash flow profitability."
The bank said Entain is the cheapest amid peers and offers the highest level of earnings growth relative to its multiple.
"The group trades on a circa 9% FY26 free cash flow yield, a 20% discount to peers and offers a +20% compound annual growth rate out to 2029E on FCF/share," it said.
"We see catalysts in H1 trading via guidance upgrades for Entain online and BetMGM."
At 1500 BST, Entain shares were up 5.9% at 763.20p.