William Hill shares surge as Jefferies says US value not priced in

William Hill shares surged on Tuesday on the back of an upbeat note from Jefferies, which lifted its price target on the buy-rated stock to 330p from 305p and said US value is not priced in.

Jefferies said the company boasts the leading US sports betting market share, yet zero value is being priced in.

It noted that after launching in Nevada in 2012, William Hill has a 29% share of real money sports betting in the US.

"As more US states legalise more quickly than we expected, the prize is substantial," Jefferies said, adding that the US market could be worth some $19bn in net revenue by end 2023, equivalent to around $5bn EBITDA at maturity.

"US competitive positioning continues to strengthen with: 1) An enlarged retail footprint due to the Caesar's deal; and, 2) Launch with CBS Sports that will boost 'William Hill' brand recognition," it said.

Jefferies also highlighted other attractions such as ample liquidity, recent strong trading and the prospective positive catalyst of a UK regulatory review.

At 1530 BST, the shares were up 7.2% at 146.90p.