Sportingbet "buy," target price raised

02/07/05 - Arbuthnot

LONDON, February 7 (newratings.com) - Analysts at Arbuthnot maintain their "buy" rating on Sportingbet (STI), while raising their estimates for the company. The 12-month target price has been raised to 300p.

In a research note published this morning, the analysts mention that the market is beginning to recognize the company’s growth potential. The analysts expect Sportingbet to witness accelerated revenue growth in the near future, boosted by the Paradise Poker acquisition. The EPS estimates for 2005, 2006 and 2007 have been raised to 47.5p, 67.5p and 86.0, respectively, to reflect healthy growth in all three of the company’s core activities.