Jefferies bullish on bookies GVC, Hills and PPB

GVC Holdings, William Hill and Paddy Power Betfair were all initiated at 'buy' by Jefferies on Monday as analysts see "at least a decade" of growth in the USA.

Jefferies analysts see two stages in the evolution of the UK listed gaming sector an imminent re-rating "now that the regulation-driven downgrade cycle is largely complete and there is greater earnings certainty".

This, they predict, will be followed by a "realisation of the scale of US sports betting opportunity", which by 2023 they forecast could be worth $12bn in gross yield, which is nearly three times as large as the UK's $4.2bn.

GVC was given a share price target of 1,100p, Paddy Power Betfair of 7,900p and William Hill 230p.

The price targets "do not include any upside from the USA".