J.P. Morgan double downgrades FDJ United on regulatory hurdles

FDJ United

02/12/2025 08:31

** J.P. Morgan double downgrades French lottery operator FDJ United FDJU.PA to "underweight" from "overweight", on multiple tax hikes and tough UK and Dutch rules

** The broker notes the timing of the Kindred acquisition was "not ideal", with its online business hit by new UK and Dutch rules, causing sharp revenue declines

** Brokerage warns that estimates "need to be rebased materially", highlighting its own EBITDA projections are on average 8% below consensus for FY 2026-27

** JPM also sees downside risk to FY 2027-28 estimates, modelling c.4% revenue growth for the Online Betting and Gaming unit versus FDJ's high-single-digit target

** Shares down 4.3% at 08:30 GMT

** Out of 11 analysts that cover FDJ United, four rate the stock "strong buy" or "buy,"​five rate "hold" and two​ rate the stock "strong sell" or "sell" - LSEG data

 (Reporting by Hugo Lhomedet)

 ((hugo.lhomedet@thomsonreuters.com))