JAMES HOLLINS INVESTEC
A strong digital marketing/CRM function was, in our view, the key factor missing from the Ladbrokes online channel and we welcome the deal. This should support the turnaround of the digital business and we retain our “buy” recommendation and 250p target on Ladbrokes.
NICK BATRAM PEEL HUNT
While we suspect that Playtech might have liked to have acquired a stake in Ladbrokes’ online operations, the structure of the deal looks attractive for both. The financial risk is limited but reputationally the arrangement needs to succeed for both. Retain “hold” on Ladbrokes with 225p target.
SIMON FRENCH PANMURE GORDON
The extended software licensing agreement should help underpin short and medium term forecasts for Ladbrokes’ digital division. We expect the partnership to be well received and see significant long-term upside. We increase our target price from 195p to 219p and reiterate “hold”.