Barclays cuts Evolution on softer growth outlook, higher regulatory risk

Evolution AB (publ)

18/12/2025 10:44

** Barclays cuts Swedish online casino games provider Evolution EVOG.ST to "underweight" from "overweight" on softer medium-term growth outlook and a heightened regulatory risk

** The broker says Asia has been a "significant drag" on 2025 growth due to cyberattacks, while the group's U.S. business continues to underperform the market

** Barclays also notes Evolution's exposure to riskier unregulated markets, which could lead to de-rating if sentiment deteriorates further due to heightened regulatory actions

** That would force Evolution to either apply stronger protections outside Europe or switch off certain unregulated markets operations, it says

** The brokerage says the stock is "boxed in" as its valuation does not reflect a slower growth profile

** Barclays slashes its price target by 35% to SEK 575

** Out of the 18 analysts covering the stock, four rate it "strong buy" or "buy", nine "hold" and five "sell" - LSEG data

(Reporting by Vera Dvorakova)

((vera.dvorakova@thomsonreuters.com))