Peel Hunt upgrades Entain to 'buy' from 'add'

15th Apr 2026 14:31

(Sharecast News) - Peel Hunt upgraded Ladbrokes owner Entain on Wednesday to 'buy' from 'add'.

The broker said fundamentals at BetMGM - Entain's joint venture with MGM Resorts - remain strong but the first quarter was slightly weak, with investment focused on higher return opportunities.

Peel Hunt updated its forecasts for Entain, lifting its 2026/27 adjusted EBITDA estimates by 2%/5% and cutting its earnings per share estimates by 15%/8%.

The broker said the key UK and US businesses are well placed strategically and it expects cash generation to accelerate into 2027.

"We expect more evidence of strategic progress with Entain's 1Q26, due tomorrow, 16 April, trading update," Peel said.

The broker cut its price target to 750p from 850p based on a 2028 estimated free cash flow yield of 10%.

At 1430 BST, the shares were up 3.7% at 578.48p.