Paddy Power Betfair

Improving Australia performance a core group catalyst; upgrading stock to ‘Outperform’

  • Sectors : Gaming
  • Companies : Paddy Power Betfair

Ratings and price correct at time of issue.

  • Paddy Power Betfair

    Closing Price: 6238p

  • RATING 08/05/19

  • PREVIOUS RATING 29/08/17

    NEUTRAL

DAVY VIEW

Post the significant regulatory changes in 2018, we believe that Paddy Power Betfair’s (PPB) addressable Australian market can grow at double-digit pace over the coming years. The group can therefore still deliver over 20% annual EBITDA growth in Australia. When coupled with its unique position in the US, it serves as a reminder of the growth opportunities available to the group. In our view, PPB is well placed to take advantage of these opportunities. We upgrade the stock to ‘Outperform’ and set our 12-month price target at £80/share (implying c.30% upside).

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May 8 2019, 06:45 IST/BST

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