This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Technical Observations – For
Technical Observations – Against
Shares at record highs implies little resistance. Broker Numis (20 Jun) says GVC is its top pick in the sector, even as the UK government raises duty on remote gambling to offset the loss from reduced takes on machine gambling. Broker Berenberg (5 Jun) says GVC is its top pick, upside to its current business before more optionality. 3% div yield. Recently promoted to the UK 100 . Acquired Ladbrokes Coral last year.
Risks to GVC include problems integrating Ladbrokes Coral, even tighter UK regulation against gambling, hurdles in expanding in the USA even after recent positive changes to laws on gambling.
Consensus is Bullish with 88% of brokers saying Buy and none saying Sell. 85% of broker price targets suggest upside from current levels. The share price breakout could encourage upgrades from the 12% of Neutrals. The average broker valuation of 1221p is just above our short-term target of round number 1200p.
Next Event: Q2 Trading Update, July (Date TBC)
Latest Broker 12-Month Consensus: 88% Buy, 12% Hold, 0% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | 5.1 | 3.2 | 19.9 | 14.6 | 40.3 | 79.3 | 141.1 | 141.6 | 232.4 |
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance.
Prepared by Michael van Dulken, Head of Research