ENT: Recent Earnings Guidance Expected To Drive Further Share Price Gains

Entain's consensus analyst price target saw mixed adjustments, with recent changes reflecting both increases and a notable reduction to 1,300 GBp. Analysts reassessed their outlook based on updated growth estimates and sector dynamics.

Analyst Commentary

Analysts recently provided updated perspectives on Entain's valuation, citing a range of factors that contributed to both upward and downward revisions to target prices. Their commentary highlights diverging sentiment regarding the company's execution and growth prospects.

• Bullish analysts continue to raise their price targets, with several citing the company's robust growth trajectory and ongoing business execution.
• Valuation uplifts reflect confidence in Entain's operational improvements and positive sector momentum.
• Multiple analysts maintain buy or overweight ratings, underscoring expectations for further gains as the company taps into attractive market opportunities.
• The focus on expanding product offerings and leveraging technology is seen as a driver of long-term value creation.

• Bearish analysts have reduced their price targets, signaling tempered expectations amid sector volatility.
• Concerns remain around the pace of earnings growth and the company’s ability to sustain recent improvements in operating metrics.
• Some have opted for more cautious ratings such as neutral, reflecting uncertainties related to competitive pressures and market dynamics.
• Mixed adjustments in consensus targets highlight a lack of unanimous conviction around execution risks and future valuation potential.

What's in the News

• Entain Plc reiterated earnings guidance for 2025, expecting approximately 7% growth in Online NGR on a constant currency basis and mid-single-digit growth on a reported basis (Key Developments).
• The company declared an interim dividend of 9.8 pence per share for 2025, to be paid on 29 September 2025 to shareholders registered as of 22 August 2025 (Key Developments).

Valuation Changes

• The discount rate has fallen slightly, moving from 10.20% to 9.94%.
• The revenue growth projection has risen marginally, now estimated at 5.35% compared to the previous 5.33%.
• The net profit margin is essentially unchanged, holding steady near 14.74%.
• The future P/E ratio has edged down minimally, from 11.25x to 11.18x.
• The fair value estimate remains unchanged at £11.71.