The British investment banking specialist Peel Hunt has unveiled its selection of companies that, according to the firm, have growth potential in 2021, and the online gambling company 888 Holdings has been one of them.
After the hard financial year, which 2020 turned out to be because of the coronavirus pandemic outbreak, the analysts working at Peel Hunt have selected 41 companies, which operate in 13 sectors, and which are considered to have considerable growth potential for 2021. The average market capitalization of the 13 sectors has been estimated at £870 million.
As Peel Hunt revealed, the market capitalisation of the companies, which have been included in the list, ranges from £228 million (for Lounders, the restaurant operator), to the staggering £17.4 billion for the online grocery shopping service Ocado. No other company working in the gambling industry, apart from 888 Holdings, was included in the Peel Hunt 2021 growth potential list.
According to analyst Ivor Jones, who works in Peel Hunt, stocks of the British gambling operator now offer significant potential for further growth in 2021. He explained that the trend is due to maturing technology investment, as well as good balance sheets and the fact that 888 Holdings has access to the high growth potential of the gambling market of the US.
888 Holdings Has the Entire Package to Ensure Further Growth in 2021, Peel Hunt Claims
Mr Jones believes that all the necessary ingredients for further growth in 2021 are present in 888 Holdings, with the company having all prospects of delivering strong organic revenue growth on an extensive range of markets across the world. This material, along with the constant upgrades to the company’s in-house technology platform and its expanding presence in the US, gives Peel Hunt all reasons to believe that the British gambling group could have a very successful year.
Apart from that, the investment banking specialist sees hidden potential associated with the US casino giant Caesars Entertainment’s takeover of the British gambling operator William Hill. The deal, estimated at a total of ££2.9 billion, which was agreed between the two parties, could provide 888 Holdings with the chance to offer a higher price than the one it unveiled in 2016 and finally acquire the online gambling business assets of William Hill in Europe. Peel Hunt’s analyst Ivor Jones believes that the group is well-placed to continue to deliver growth in the months to come.
As Casino Guardian already reported, US gambling giants are getting more and more interested in taking over British gambling operators’ assets, as they are willing to take advantage of their expertise in sports betting and online gambling. For now, Caesars Entertainment had not revealed any interest in keeping the European business of William Hill to itself, so the assets could be available for purchase from other industry operators, 888 Holdings included.