Analyst Views: What did you make of Paddy Power’s results?

 
Oliver Smith
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RICHARD STUBER NOMURA INTERNATIONAL

“We see full year downgrades as reflective of one-off events and currency and not indicative of the underlying long-term growth potential of Paddy Power’s online businesses. We reiterate our ‘buy’ recommendation based on… its targeted retail expansion plans and its attractive balance sheet.

IVOR JONES NUMIS

“Even after recent falls Paddy Power continues to be on a full valuation. The company is driving a shift to mobile (up 100 per cent to 43 per cent of total revenue in the first half 2013) and the market share in Italy is growing. We believe these business dynamics justify high valuation multiples.

JAMES HOLLINS INVESTEC

“Paddy Power’s interim results were behind our expectations and we look aggressive on our above-consensus 2013 estimates given projected second half forex headwinds and further costs associated with Italian new product roll-out and targeted market share gains… – we maintain a ‘hold’.