MS cuts Evolution to 'equal weight' on lower revenue forecasts

Evolution AB (publ)

22/07/2024 09:28

** Morgan Stanley cuts Swedish online gaming company
Evolution to "equal weight" from "overweight", saying it has
less confidence in the 2024 revenue acceleration story
    ** It also cuts PT by 20% to SEK 1,210 per share
    ** MS notes Evolution's Q2 results came 4-5% below its
estimates, and says development in North America was
particularly disappointing
    ** While it expects Evolution to stay strong in the live
casino sector, MS notes challenges from increasing competition
and slower liberalisation of online gambling
    ** It adds that despite the company's relative diversity,
its unregulated mix is high and increasing
    ** Out of 14 analysts covering Evolution, nine rate it "buy"
or "strong buy", four "hold" and one "sell"

 (Reporting by Anna Chaberska)
 ((Anna.chaberska@thomsonreuters.com))