Berenberg lowers target price on Entain

Bernberg noted that Entain's shares have fallen 37% year-to-date, but said it believes the company has still not been given credit for its prospects both in the US and outside.

"While we can understand market scepticism given persistent earnings downgrades and market share losses, the raising of ex-US EBITDA guidance with the H1 results is the first positive step for Entain, although it is not yet out of the woods," said Berenberg.

The German bank highlighted that since Entain's upgrade on 8 August, its shares have rallied 20%, and said it would expect in-line Q3 results to be enough to continue the shares' upward trend.

"In the US, we believe the launch of Angstrom will support an improving product and tech offering. Although we do not expect immediate results, any evidence that BetMGM has improved in the US would provide scope for a rerating," added Berenberg, which reiterated its 'buy' rating on the stock.

Reporting by Iain Gilbert at Sharecast.com