Sports betting, live casino in 'growth sweet spots', Jefferies says

Kindred

29/09/2022 11:24

** Jefferies says sports betting and live casino are "growth
sweet spots" in the online gambling sphere, supported by
regulatory changes and digitalisation, as it starts coverage of
three Nordic players
    ** It expects global online revenues to triple in the medium
term to $180 billion, and says companies with exposure to North
America, online sports betting and live casino are well-placed
to capitalise on this
    ** The brokerage initiates its top pick Evolution  EVOG.ST 
and Kambi  KAMBI.ST  with a "buy", and Kindred  KINDsdb.ST  with
"hold"
    ** Only 50% of the live casino potential is priced in for
Evolution, Jefferies says, expecting further share buybacks and
M&A with 1.5 bln euros ($1.45 bln) net cash by the end of 2024
    ** For Kambi, new contracts and enlarged addressable market
should drive a re-rating and earnings progression over the next
year, the broker says
    ** Meanwhile, it expects Kindred's temporary exit from the
Netherlands and tough comparison periods to subdue the group's
trading for some time
($1 = 1.0319 euros)
 (Reporting by Marta Frackowiak)
 ((marta.frackowiak@thomsonreuters.com))