DAVY VIEW

Entain will report H1 results on August 10th. It has had a busy H1, with four deals and an 8% equity issuance. The key consideration will be rhetoric around prospective underlying growth rates. Entain has faced regulatory headwinds in several regions; however, at the Q1 update, management noted that it will lap a number of these impacts in H2. We believe stronger underlying growth is key to driving a higher sustained rating. We update forecasts to reflect the recent transactions; the equity issuance; some housekeeping changes; and the recent BetMGM update. We modestly adjust our price target to 1640p (previously 1650p).