Deutsche Bank slightly lowers target price on 888 Holdings

Analysts at Deutsche Bank slightly lowered their target price on gambling giant 888 Holdings from 160.0p to 150.0p on Monday after the group's recent Capital Market's Day "did as expected".

Deutsche Bank said 888's CMD raised synergy targets from the William Hill integration and mapped out a route to return leverage to comfortable levels.

However, it also highlighted that the firm's 3.5x leverage target will not be reached before 2025, when leverage will still be "materially ahead" of peers.

The German bank noted that 888's opex synergy targets of £116.0m will add 55% to William Hill's 2022 underlying earnings run rate but also pointed out that some of the increment had been absorbed by responsible gambling initiatives.

DB also reiterated its 'buy' rating on the stock.

Reporting by Iain Gilbert at Sharecast.com