JPM initiates FDJ United with 'overweight', citing appealing risk-reward

FDJ United

17/06/2025 09:13

** J.P.Morgan initiates French gaming group FDJ United FDJU.PA with an "overweight" rating and a PT of 42 euros, citing solid fundamentals and an appealing cash and return profile

** Shares rise 4.1% at 0740 GMT, on track for best day since October 2024, when they closed 7.3% higher

** "FDJ is a leading French gaming operator with a leading retail presence in France and a growing presence in international markets following its acquisition of Kindred," broker says

** Broker notes FDJU's solid fundamentals are currently overshadowed by mixed industry dynamics, but has an overall defensive revenue growth profile with online opportunities to further improve post Kindred acquisition

** "Estimates have been reset and valuation is increasingly appealing," says J.P.M.

** Of 10 analysts that cover FDJ United, five rate the stock "strong buy" or "buy" and ​four rate "hold" - data compiled by LSEG

(Reporting by Dimitri Rhodes)

((Dimitri.rhodes@thomsonreuters.com))