logo-loader
viewWilliam Hill PLC

William Hill downgraded to ‘hold’ by Deutsche Bank after challenging year

The German bank also trimmed its target price for the FTSE 250-listed firm to 205p from 210p, with the stock trading at 183.80p

William Hill sign at horse race

William Hill PLC (LON:WMH) shares fell on Friday after the bookmaker was downgraded to ‘hold’ from ‘buy’ by Deutsche Bank in a review of the UK gaming sector, entitled 'The American Dream'.

The German bank also trimmed its target price for the FTSE 250-listed firm to 205p from 210p, with the stock trading at 183.80p, down 1.5% on Thursday's close.

READ: William Hill says bookmaking trends improving following mass shop closure

Deutsche Bank's analysts said: "2019 was a challenging year for the Online Gaming sector, which faced a wide range of regulatory hits. But the sector outperformed the UK market, helped by ongoing sector M&A."

However, they added: "The year finished on a more positive note. Boris Johnson's election victory in the UK should drive a more pragmatic approach to gambling regulation."

The analysts noted that the $2.7bn ascribed to DraftKings provides a benchmark for valuing the European operators' US interests, which had until recently been valued at zero.

They concluded: "We expect similar themes for FY20, with ongoing regulatory tightening in Europe but a further wave of consolidation/M&A and growing investor interest in the prospective upside from the US."

But Playtech upgraded

Elsewhere in the sector, Deutsche Bank upgraded its rating for FTSE 250-listed Playtech PLC (LON:PTEC) to ‘buy’ from ‘hold’ and upped its target price to 471p from 425p.

Meanwhile, mid cap peers Flutter Entertainment PLC (LON:FLTR), the former Paddy Power Betfair group, and Ladbrokes owner GVC Holdings PLC (LON:GVC), plus FTSE Small Cap Gamesys Group PLC (LON:GYS) all received upwards revision to their target prices by Deutsche Bank, to 8,900p from 8,300p, to 1,125p from 1,035p, and to 1,100p from 1,050p respectively.

Quick facts: William Hill PLC

Price: 136 GBX

LSE:WMH
Market: LSE
Market Cap: £1.19 billion
Follow

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

DomaCom Ltd CEO talks growth in funds under management and looks ahead to...

DomaCom Australia Ltd’s (ASX:DCL) Arthur Naoumidis caught up with Proactive's Andrew Scott after reporting Funds Under Management (FUD) has grown by 10.4% since the start of the current quarter to $70.9 million. He says a new product they're launching now which is interesting investors...

3 days, 4 hours ago

2 min read