Betfair is reallocating resources; trying to create a business of better quality with better long-term growth potential. Management now seems keener on adapting the product to the customer and less determined that the customer adapt to the product. Target cut to 1,000p but “Buy” guidance.
SIMON FRENCH PANMURE GORDON
Current trading is slightly better than we anticipated with revenue up two per cent year on year in Q3 to date and the group’s guidance indicates a small downgrade to full year expectations reflecting the exit from certain markets. We reiterate our “Buy” recommendation and 912p target.
NICK BATRAM PEEL HUNT
The narrative that accompanied the figures contained everything that we hoped it might. The task facing the new management team should not be underestimated, but at least Breon Corcoran now appears to be pointing the business in the right direction. We rate Betfair as a “Buy”.