Barclays downgrades Entain to 'equalweight'

Barclays downgraded Entain on Tuesday to ‘equalweight’ from ‘overweight’ and cut the price target to 1,070p from 1,120p, as it said "the recovery is not straightforward".

"For the stock to work we think it needs Online to return to market growth rates or better and US share to stabilise (and grow)," Barclays said, adding that "neither are a given".

The bank said there is little free cash flow and high leverage restricts M&A.

"A new CEO could address the balance sheet," it said.

"The stock appears cheap but risk-reward is fairly balanced here so we downgrade to EW."

At 0935 GMT, the shares were down 1.8% at 971.60p.