Update shared on 28 Nov 2025
Fair value Decreased 14%Analysts have lowered their price target for Evoke by approximately 20%, reflecting concerns about increased UK gaming tax rates as well as a more challenging outlook for revenue and profitability.
Analyst Commentary
Amid evolving regulatory and market conditions, analysts have provided a range of perspectives on Evoke's outlook, highlighting both growth opportunities and risks to valuation and execution.
Bullish Takeaways- Bullish analysts maintain a positive long-term stance on Evoke and see potential upside from resilient core operations despite regulatory changes.
- Some continue to rate the shares as a buy, citing the company's ability to adapt to new tax frameworks and potential for market share gains as smaller players encounter headwinds.
- They see Evoke benefiting from ongoing industry consolidation, which could drive efficiencies and improve competitive positioning.
- Recent acquisition activity underscores confidence in the underlying business value and may bolster investor sentiment upon successful integration.
- Bearish analysts express concern about a significant uptick in UK gaming tax rates, which is expected to negatively impact profitability and revenue forecasts across the sector.
- Higher taxes on iGaming, compared to sports betting, could encourage UK consumers to shift to offshore alternatives and increase uncertainty for future top-line growth.
- Recent downward adjustments in price targets reflect a less favorable risk/reward profile, with execution risk elevated in light of regulatory volatility.
- There is apprehension about the success of integration following recent acquisition announcements, further clouding near-term visibility on performance and margins.
Valuation Changes
- Fair Value Estimate has fallen from £1.02 to £0.87, reflecting a decrease of approximately 14%.
- Discount Rate has risen slightly, increasing from 17.04% to 17.29%.
- Revenue Growth Projection has edged down from 5.27% to 5.09% annually.
- Net Profit Margin forecast has declined from 8.28% to 7.01%.
- Future Price/Earnings (P/E) ratio has increased moderately, rising from 4.26x to 4.36x.
Disclaimer
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