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- Goldman Sachs has downgraded Entain (OTCPK:GMVHF) to sell from buy saying that the company has been having problems with growth due to a combination of regulatory headwinds, competition, market dynamics, and regulatory headwinds.
- The firm lowered its price target to 820p from 1450p (~4% downside based on Monday's close on the London Stock Exchange).
- Analyst Ben Andrews noted that Entain (OTCPK:GMVHY) has a joint venture with BetMGM (MGM) losing market share as well as a larger-than-expected £585M HMRC settlement.
"We now expect Entain’s pro-forma Online growth to be negative in 4Q23 and 1H24, only returning to positive growth in 2H24," he wrote.
- Andrews added he is cutting his fiscal 2024 and 2025 EPS estimates by ~30%.
- He noted that the company's free cash flow has also significantly deteriorated