Exane BNP Paribas lifts target price on Ladbrokes, holds 'outperform' rating post strategy update
Exane BNP Paribas has reiterated an ‘outperform’ rating on gambling house Ladbrokes and lifted its target price 8% from 125p to 135p off its recent strategy update.
FTSE 250
19,739.84
08:40 26/04/24
FTSE 350
4,461.18
08:40 26/04/24
FTSE All-Share
4,414.28
08:40 26/04/24
Ladbrokes Coral Group
173.50p
16:04 28/03/18
Travel & Leisure
7,570.62
08:40 26/04/24
The rating is conservative and is broadly in line with the current market price, Exane said in a note to clients.
Analyst Roberta Ciaccia said while no figures were given at the company’s recent update, it was clear management wants to make the retail estate more competitive.
Ciaccia revised forecasts and said in particular high investment in digital or product marketing in particular would have a negative short term impact on earnings.
The analyst picked a 9% decrease in earnings per share for the year 2015 and a 6% fall for 2016.
Exane said a merger with Coral is highly likely and a fair value for the combined entity would be 185p per share.
Shares in Ladbrokes fell 0.82% to 132.30p on Friday at 0853 BST.