JP Morgan starts Playtech at 'outperform'
Playtech
450.50p
16:40 26/04/24
Analysts at JP Morgan initiated coverage of Playtech at 'overweight', highlighting the recent stabilisation in the company's business-to-business arm, with its activities outside of Asia having turned higher, and its recent acquisition of Snaitech.
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The investment bank labelled the purchase of Snaitech "transformational" and said it would open up a new avenue for growth in the business-to-consumer space.
And over the medium-term, the analysts saw upside to margins in both the B2B and B2C units, further telling clients that they expected the 2019 financial year to mark the trough for the company's growth, margins and cash flows.
"Beyond FY19E, we expect broad-based growth across B2B and B2C. The overall business has de-risked, in our view, making the current valuation compelling."
JP Morgan set an initial target price for Playtech shares of 603.0p.