Analyst Views: What do you make of 888 Holding’s third quarter trading update?

 
Oliver Smith
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RICHARD CARTER DEUTSCHE BANK

“The current rating is now full when set against the group’s high and growing proportion of unregulated and untaxed revenues, slowing revenue growth, rising UK marketing costs... and the over estimation of how quickly US online gaming regulation will occur. We therefore rate the shares a ‘hold’.

NICK BATRAM PEEL HUNT

“A 16th consecutive quarter of year-on-year growth from business to consumer is an achievement few can match. Momentum is slowing but we believe that the developing US regulatory situation will be a key driver of sentiment going forward. We are happy to retain our ‘buy’ stance.

SIMON DAVIES CANACCORD GENUITY

“It seems to us that one way 888 could use its strengthening balance sheet would be to fund bolt-on acquisitions, providing some potential for upgrades. But we see limited scope for re-rating and retain our ‘hold’ recommendation and 160p multiples derived target price.