Jefferies cuts Better Collective to 'hold' on core markets uncertainty
21/02/2025 09:14
** Jefferies cuts Better Collective's BETCO.ST rating to
"hold" from "buy" on and uncertainty in two core markets
** The broker expects two of the Denmark-based digital
sports media group's largest and highest-growth markets, Brazil
and North America, to face headwinds through 2025
** Brazil changed its laws to be a regulated market,
resulting in taxing Better Collective's revenue base at about
26%, Jefferies says
** Jefferies also notes that the company expects EUR 20-30
million headwinds from increased competition and players account
reactivation in Brazil
** Better Collective is concerned about its 2025 performance
in North America due to reduced marketing and high competition
from dominant companies, adds Jefferies
** The broker says re-emergence of positive trends in Brazil
and North America is needed to attract investors again, which is
not likely until 2026
** Out of four analysts covering the share, one rates it
"strong buy" and three rate it "hold," according to LSEG data
(Reporting by Vera Dvorakova)
((vera.dvorakova@thomsonreuters.com))