{"id":6197,"date":"2023-11-29T06:11:14","date_gmt":"2023-11-29T06:11:14","guid":{"rendered":"https:\/\/slategray-wallaby-310340.hostingersite.com\/index.php\/2023\/11\/29\/goldman-sachs-downgrades-entain-between-regulatory-turbulence\/"},"modified":"2023-11-29T06:11:14","modified_gmt":"2023-11-29T06:11:14","slug":"goldman-sachs-downgrades-entain-between-regulatory-turbulence","status":"publish","type":"post","link":"https:\/\/casino-online-best.com\/index.php\/2023\/11\/29\/goldman-sachs-downgrades-entain-between-regulatory-turbulence\/","title":{"rendered":"Goldman Sachs Downgrades Entain Between Regulatory Turbulence"},"content":{"rendered":"
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Goldman Sachs has downgraded its recommendation from buy to sell, dealing a severe blow to Entain, the parent company of Ladbrokes and Bwin. This action was unexpected. The apparent difficulties with Entain\u2019s commercial expansion, especially in its online segment, are the source of the financial giant\u2019s worries.<\/p>\n

This downgrade was accompanied by a significant drop in Entain\u2019s price objective, which fell from 1,450p to 820p. Bearish sentiment is reflected in this revised target, which represents a 2.9% decline from the closing price on November 27. Also 1.7% lower than the previous Friday\u2019s closing at 859p was Monday\u2019s closing price of 844p.<\/p>\n

Regulatory Headwinds and Fierce Competition<\/strong><\/h2>\n

Growth concerns were mentioned in Goldman Sachs\u2019 summary of the difficulties Entain has faced recently. Stronger regulations, more intense competition, and changes in the market are all blamed for the difficulties. Due to the extreme impact on Entain\u2019s online gaming activities, Goldman Sachs has forecast negative proforma online growth in both the fourth quarter of 2023 and the first half of 2024, with a possible rebound only in the latter half of that year.<\/p>\n

In addition to the difficulties, Goldman Sachs is significantly lowering its expectations, cutting projections for Entain\u2019s profits per share in 2024 and 2025 by almost 30%. This significant change highlights serious concerns about Entain\u2019s financial performance. These issues include the decline in free cash flow, which suggests that maintaining operating liquidity may prove to be difficult.<\/p>\n

Goldman Sachs notably noted key problems that Entain is facing in the industry, emphasizing the declining market share of BetMGM, the company\u2019s joint venture with MGM Resorts International, in the United States. BetMGM has an 18% market share in states that allow online sports betting and iGaming, but its growth has stalled, raising questions about Entain\u2019s competitiveness in general.<\/p>\n

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