Entain share price forecast: is it worth a gamble?
The gambling giant has released its latest results. What is the Entain share price forecast?
- Is Entain being taken over?
- Entain quarterly results
- What the markets did
- Entain share price forecast
Entain is a key player in both the UK and global gambling sphere. The company owns the massive UK Ladbrokes and Coral chains of betting shops, as well as the online Sportingbet, Bwin and PartyPoker brands. The business, which is listed on the London Stock Exchange, also has a joint venture agreement with the US casino giant MGM Resorts under the BetMGM brand.
Earlier this year, MGM Resorts made an £8.1bn ($11bn) bid to take Entain over, which was turned down. Etain said the offer “significantly undervalues the company and its prospects”. In a statement, it added: “Entain shareholders are encouraged to take no action.”
There was also change at the top of the company earlier this year, when Jette Nygaard-Andersen took over as CEO, replacing Shay Segev who himself had only become CEO in July 2020.
Let’s look at what might happen in the future in the form of an Entain share price forecast.
Is Entain being taken over?
Despite its rejection of the MGM Resorts bid, there are still other companies interested in Entain and, on 21 September, the American company DraftKings came to the table with a takeover offer worth around £15bn. The Entain board are understood to be considering their response to the bid that, in accordance with the City Code on Takeovers and Mergers, will have to either be made firm or withdrawn by 5pm on 19 October.
In a statement, Entain said: “There can be no certainty that any offer will be made for the company, nor as to the terms on which any such offer may be made.
“A further announcement will be made as and when appropriate. Shareholders are urged to take no action at this time.”
The matter is complicated by the fact the bid requires the approval of MGM, which released a statement stressing: “As a consequence, any transaction whereby Entain or its affiliates would own a competing business in the US would require MGM’s consent.
“MGM’s priority is to ensure that BetMGM continues to capture the growing US online opportunity and realising MGM’s vision of becoming a premier global gaming entertainment company. MGM believes that having control of the BetMGM joint venture is an important step towards achieving its strategic objectives.”
It is through the prism of this recent history, plus some ongoing uncertainty, that we have to examine the Entain stock forecast. First, though, let's look at the recent results.
Entain quarterly results
When its latest set of quarterly results came out on 12 October, things looked encouraging for the business. The company’s gaming revenue was stronger and it said more people were going into its shops in the United Kingdom as Covid-19 restrictions were lifted. More specifically, Entain’s net revenue from gaming went up 4% compared to the same quarter in 2020, while online sports betting revenue rose by 12%.
The results seem encouraging, especially when considering that these set of figures represent the 23rd consecutive quarter that Entain’s online growth has risen by 10% or more. The company said that overall trading volumes at its betting shops were recovering toward pre-pandemic levels, while retail betting activity was “steadily rebuilding” in Europe.
While Entain did not reveal details, it added that its performance in Australia and Brazil was particularly notable, while pointing to Germany as a territory where performance was not especially strong.
Away from its pure financial results, the company said its Advanced Responsibility & Care (ARC) programme was continuing to progress, while the Entain Foundation US had funded research with the University of Nevada in Las Vegas, launching a new app to support the American Gaming Association’s (AGA) Responsible Gaming Initiative.
Commenting on the results, Nygaard-Andersen said: “These results demonstrate Entain’s continuing ability to deliver sustainable, consistent and diversified growth. Our powerful Entain platform provides customers with great products and experiences, which enables us to grow ahead of our markets as demonstrated by 23 consecutive quarters of double-digit online growth.
“We continue to lead our industry in the all-important area of player protection, and I am excited by the early results of our innovative ARC programme, which we firmly believe has the potential to transform player protection across the industry.”
She added: “Our total addressable market is expected to more than triple to over $160bn (£117bn). This will be driven by the significant opportunity in the US, where we are now challenging for the number one market position, our growth plans in other new and existing markets, and our strategy of entering into new areas of interactive entertainment.
“By offering customers ever more engaging products, while leveraging our scale and technology, we will drive the flywheel effects of secular growth dynamics that can triple the size of our business. As a result, we remain very confident in Entain’s future prospects.”
The company said that its forecast for its EBITDA income remained at somewhere between £850m and £900m, in keeping with previous predictions, although it did not say what it thought the actual profit, loss, or revenue would be. This lack of clarity could have an impact on the Entain stock forecast.
What the markets did
The results did not generate positive activity in the stock markets, at least not immediately, with the Entain share price news being somewhat underwhelming. When the market closed on 11 October, the Entain share price stood at £2,108 but on 12 October, just after the markets had reopened, the ENT stock price stood at £2,070, representing a fall of a little over 1.8% overnight. However, it’s worth noting that the Entain share price was rather higher than it was before the latest takeover speculation began, with the ENT stock price at start of business on 21 September standing at £1,941.50.
Entain share price forecast
In terms of the Entain stock price prediction, the Financial Times asked 13 analysts for their Entain share price forecast for 2021 and 2022. From the experts polled, the highest Entain share price prediction was up 44% from its close of trade price on 11 October at £2,800, while the median Entain stock forecast stood at £2,200, up 4%. There was some negativity, though, with the most pessimistic Entain stock prediction seeing it drop by 24.1% over 12 months to £1,600. In terms of recommendations, five out of the 18 experts polled said to buy Entain, nine said it would outperform expectations, and a further four said to hold. No one suggested it would underperform against expectations, nor did anyone suggest selling Entain stock.
Potentially. Although many analysts appear to be recommending buying – or at least not selling – Entain stock, you should still be careful. You will have to do your own research before investing. You will also need to remember prices can go down as well as up, and you should never invest more money than you can afford to lose.
The share price might do but, then again, it might go down. The general consensus appears to be that it will go up slightly over the next year. That said, you must remember that predictions are very often wrong, so be careful.
According to WalletInvestor, the Entain share price could reach as high as £7,033.110 at some point in October 2025. We must remember that that is only a rough prediction, and it is far away enough in the future for there to be a distinct probability that it will be wrong.
If you want to buy shares in Entain, you can do so from most traders and brokers. While we do not currently sell Entain shares at currency.com, we will let you know if and when we do.