Broker tips: Acceler8 Ventures, Haleon

4th Nov 2026 14:45

(Sharecast News) - Berenberg initiated coverage of Acceler8 Ventures with a 'buy' rating and a 130p target price on Wednesday, arguing that the company's exposure to China's lottery market offers significant upside that was not reflected in the current valuation.

The broker said Acceler8, through its wholly owned Hui10 platform, was uniquely positioned to help digitise China's $92bn lottery industry and could benefit from a shift away from the country's paper-based lottery system. Berenberg estimates its valuation could rise to 275p if regulators approve paperless lottery play, which it believes could happen within the next six months.

The broker highlighted Hui10's growing rollout, with roughly 14,000 stores now connected to its Lucky World retail platform, up from 3,600 a year earlier, and a current run rate of around 1,500 new stores per month. Acceler8 was said to be targeting 70,000 connected outlets by the end of 2027.

Berenberg said Hui10's decade-long development work with state-owned enterprises and lottery operators has created substantial barriers to entry for potential competitors that might also be looking to capitalise on the digitisation of the lotteries in China as the firm secured a number of exclusive partnerships.

While monetisation remains at an early stage, the broker forecasts revenues of £635m and underlying earnings of £50m by 2028, rising materially if paperless play was approved. Berenberg also noted strategic backing from Entain and Allwyn, which own 8% and 2% of Acceler8, respectively.

Jefferies downgraded Haleon to 'hold' from 'buy' on Wednesday and cut its price target on the stock to 320p from 400p following the consumer healthcare firm's third-quarter update last week.

Haleon shares tumbled last Thursday after it cuts its full-year organic revenue growth guidance, pointing to soft third-quarter cold and flu sales. The company now expects 2026 organic revenue growth of around 2.5%, down from previous guidance of 3% to 5%.

In the three months ended September, organic revenue growth was 2.6%, below the company's expectations, with price up 2.1% and volume/mix up 0.5%.

Jefferies said that with guidance now downgraded, it thinks Haleon's commitment to high single-digit organic profit growth highlights an imbalance between profit and investment behind volume/mix.

"We now model a circa 150bp FY27 margin reset, cutting EPS 11% to circa 10% below consensus," Jefferies said. "The shares fell 16% last week, reflecting this risk, though we see no total shareholder return to our updated 320p PT while the earnings reset and reinvestment remain unproven."