Bank of America downgraded its stance on Ladbrokes owner Entain on Thursday to ‘neutral’ from ‘buy’ and cut the price target to 700p from 870p as it pointed to rising competition from prediction markets and slowing UK growth.
Source: Sharecast
The bank said it sees downside risks at BetMGM - the company's joint venture with MGM Resorts - amid competition from US prediction markets.
It said the UK performance has been good so far. However, growth may be peaking as new taxes come into effect.
It also said market share gains are unlikely in the near term and cut its 2025-28 earnings per share estimates by 5% to 15%, leaving them 2% to 14% below consensus expectations.
At 1450 BST, the shares were down 6.6% at 556.80p.
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