Jefferies still positive on Europe's gaming sector
STOXX 600 down 0.3%
Moody's downgrades France
Vivendi units list across Europe
Wall St futures edge up
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JEFFERIES STILL POSITIVE ON EUROPE'S GAMING SECTOR
Analysts at Jefferies remain positive on the European gaming sector into 2025, driven by several key themes, with investor attention remaining highly focused on North America and the timing and scope of growth.
Given strong growth in online sports betting (OSB) and iGaming in 2024, Jefferies has upgraded its estimates for the U.S. total addressable market, now seeing circa $50 billion gross gaming revenue market by 2030, from $37.5 billion previously.
"For 2025, we see several stocks in the Gaming sector that could benefit from positive catalysts," Jefferies writes.
Focus remains on the legalisation of OSB in some U.S. states, although Jefferies admits there is limited expectation of more states legalising OSB in the short-term.
"Operators anticipate that the general backdrop for US state legalisation remains subdued," Jefferies says, with the prospect of OSB in California and Texas remaining a key discussion point.
On a company specific level, Jefferies says Flutter attracts ever-increasing investor interest, boosted by its primary listing in New York and capital markets day in September which included updated guidance.
The firm rates Entain, Evolution, Better Collective, Evoke and Kambi Group with 'buy' ratings, while Lottomatica remains its top pick among mid-cap operators for 2025.
(Samuel Indyk)
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MONDAY'S OTHER LIVE MARKETS POSTS:
THE ECB IS WIDE OPEN TO CUTTING RATES BELOW NEUTRAL - BOFA CLICK HERE
EUROPE BEFORE THE BELL: FUTURES SOFT AT START OF CENTRAL BANK HEAVY WEEK CLICK HERE
CHINESE CONSUMERS SHUT UP SHOP CLICK HERE
European shares mostly lower https://reut.rs/41ESwJd
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