Entain PLC: UBS Upgrades to ‘Buy’ Amid Profitability Progress and Undervaluation

Entain PLC, a prominent player in the sports betting and gambling sector, has recently seen a significant upgrade from UBS, which has shifted its rating to ‘buy’. This move is attributed to the company’s notable progress in profitability and perceived undervaluation in the market. Entain operates globally through well-known brands such as Bwin, Coral, Ladbrokes, PartyPoker, and Sportingbet, serving customers across various regions.

As of May 8, 2025, Entain’s close price stood at 700.2 GBP, with a market capitalization of 4.96 billion GBP. Despite a challenging year, with a 52-week high of 833.6 GBP on December 11, 2024, and a low of 452.5 GBP on April 6, 2025, the company has shown resilience. The price-to-earnings ratio currently stands at -9.22, reflecting the market’s cautious stance on its earnings potential.

The upgrade by UBS has had an immediate positive impact on Entain’s stock performance. On May 13, 2025, Entain’s shares surged to their highest level in two months following the upgrade. This sentiment was echoed across multiple financial news sources, including Investing.com and AJ Bell, highlighting the broader market’s recognition of Entain’s operational improvements.

In the broader market context, the FTSE 100, where Entain is listed, experienced modest movements. On the same day, the FTSE 100 saw a slight increase, with the index trading at 8,602.24 points by mid-afternoon. This cautious trading environment reflects investors’ broader strategy of waiting for more economic and trade-related news.

Entain’s recent performance and the upgrade from UBS underscore the company’s potential for recovery and growth. As the market continues to assess Entain’s strategic initiatives and operational progress, the company remains a key player in the consumer discretionary sector, particularly within the hotels, restaurants, and leisure industry.