Davy Research



An updated look at pro-forma valuation in light of heightened FOBT risk

Press speculation last weekend that the UK government is inclined to introduce a £2 staking limit on FOBTs (fixed odds betting terminals) has led to a 9% fall in William Hill’s market cap...

January 25 2018 | David Jennings , Joseph Quinn | Company Report | 21 pages

2018 outlook: regulatory changes hold the key to gaming returns; backdrop for hotels remains supportive

2018 is likely to see important developments in the regulation and taxation of gambling in the US, UK, Germany and Australia. These changes could potentially redefine the sector...

January 15 2018 | David Jennings , Joseph Quinn | Sector Report | 20 pages

2018: a year of delivery in new rooms and longer-term pipeline

We have updated our Dalata price target to €6.90 from €6.20 as we roll forward our DCF model and incorporate the start of the group’s UK asset-light expansion. For 2018, in addition...

January 15 2018 | Joseph Quinn , David Jennings | Company Report | 11 pages

Conviction calls for 2018: earnings growth, financial strength and returns continue to dominate

The Davy Research Conviction List represents the best conviction ideas from the 120 stocks in our coverage universe. Our ideas are based on deep fundamental knowledge of these...

January 2 2018 | Barry Dixon | Sector Report | 18 pages

LCL deal smart move strategically but valuation looks full; initiate with ‘Neutral’ rating and 912p price target

We believe that GVC’s proposed bid for Ladbrokes Coral makes sense strategically. It further de-risks the business from a regulatory standpoint and is opportunistic to the extent...

December 13 2017 | David Jennings , Joseph Quinn | Company Report | 48 pages

Capital Markets Day reinforces the UK opportunity, targeting 8,000 rooms

Dalata’s Capital Markets Day in London on November 7th highlighted management’s UK growth strategy in addition to the depth of the UK team to execute on this strategy. Its first...

November 8 2017 | Joseph Quinn , David Jennings | Company Report | 12 pages

Australian tax increases; reducing William Hill and Ladbrokes Coral 2019 earnings forecasts for POC

In line with our recent move to apply a federal 15% point of consumption (POC) tax to our Paddy Power Betfair (PPB) Australian forecasts, we now do the same for William Hill (WMH) and...

September 12 2017 | David Jennings , Joseph Quinn | Sector Report | 14 pages

Near term re-rating unlikely without capital return; focus needs to be inward-facing over next 12 months

Paddy Power Betfair has de-rated 20% year-to-date on the back of the surprise CEO announcement, ongoing sluggishness in Europe Online and rising tax risks. With the new CEO unlikely...

August 29 2017 | David Jennings , Joseph Quinn | Company Report | 28 pages

50% upside factoring in UK opportunities

We reinitiate coverage on Dalata with an ‘Outperform’ rating and a 12-month price target of €6.20 (23% upside). Beyond this, we see material upside for Dalata in regional UK. Our...

August 21 2017 | David Jennings , Joseph Quinn | Company Report | 51 pages

Updated assumptions following H1 trading update; 5% upgrade to 2018 forecasts

Last week’s announcement by Ladbrokes Coral that it has identified an additional £50m in merger-related synergies leads us to raise our EBIT/EPS forecasts for 2018. The magnitude of...

July 31 2017 | David Jennings , Joseph Quinn | Company Report | 12 pages

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