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May 8 2019, 06:45 IST/BST
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).