Entain Stock Receives “Buy” Recommendation from Analysts￼
Entain, the online gambling giant continues to outperform its peers. Last year, the company refused buyout approaches from both U.S. rival DraftKings and casino operator MGM. But this has not stopped the company from continuing to grow.
In 2021, core earnings climbed 4.6% to 881.7 million pounds ($1.18 billion), which was a great deal higher than analysts had predicted. At the beginning of 2021, Entain’s potential earnings for the year were estimated at around 874.4 million pounds.
Entain Stock: Analyst Outlook
This excellent performance has not gone unnoticed by analysts either, who are now recommending that investors buy the stock. This is because they believe that the company is well placed to take advantage of the growing global online gambling market.
The company has now received a buy recommendation from the majority of analysts who cover the stock. This is based on the solid growth prospects for the company and the online gaming industry as a whole. The average twelve-month price target for the stock is 2,269.14 GBX ($28.35), which represents a potential upside of 55% at the time of writing this article.
In all, ten analysts are now rating the stock as a buy, with one of these rating it as a strong buy. This is based on the strong fundamentals of the company and the attractive growth prospects for the gambling industry.
Entain Stock: Business Outlook
And Entain is well-positioned to take advantage of this growth. The Group has several respected brands in the online sphere, including PartyCasino, one of the most recognised and trusted names in the world. Entain has a huge presence in the UK, Europe, the US (through a partnership with BetMGM), Asia Pacific, and Latin America. It operates in 31 regulated or regulating territories and employs over 25,000 in more than 20 locations worldwide.
The company has set itself a high target for growth in the coming period and is aiming to treble the size of its business by expanding into more regulated betting markets and in areas like e-sports and sports betting. To this end, it has embarked on a campaign of acquisition, buying seven companies in the last 14 months. This is a marked increase from its previous rate of around one deal per year.
By expanding into areas such as eSports, which is a rapidly growing market, Entain is tapping into new areas of growth. This is a smart move as it diversifies the company’s revenue stream and also reduces its reliance on the more traditional areas of sports betting and casino gaming.
This aggressive growth strategy is likely to lead to further share price gains for investors. One must remember that Entain has outperformed each of Draft Kings, Flutter and MGM during the last 5 years. Therefore, Entain stock is a great buy in this sector.
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