The company’s price target on the buy-rated stock was lifted from 305p to 330p

With the U.S. online gambling market on the rise, Wall Street’s Jefferies Group has raised William Hill’s target stock price to twice the current price.

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The rapid growth of online sports betting in the United States is expected to be transformed into the profit momentum of William Hill’s business in the United States.?

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The price target of William Hill has been raised to 330 pence.??

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Analyst James Wheatcroft?from?Jefferies?group says?that the previous target price market has ignored the company’s growth in online gambling in the United States. ?

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Considering?the fact that William Hill controls 29% of the sports betting market in physical betting shops in the United States, the future profits of the company are considerable.

According to data from?Eilers?&?Krejcik?Gaming, Flutter Entertainment in the United States plus DraftKings, online betting accounts for a total of 62.56% of the US Internet sports betting market, while William Hill’s share is only 9.62%. In other words, there is still a vast space to expand in the US market.?

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Not to mention the long-term cooperation between William Hill and Caesars’ Eldorado Resort Group, which has also become an important key factor to seize share in the United States.?

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Caesars owns 20% of William Hill’s US business share.?

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In the United States, the main problem for online sports lottery operators is that the cost of acquiring new users is too high, and as confirmed by DraftKings’s second-quarter performance, large expenditures in this area may cause operators to suffer losses. William Hill is cooperating with land-based casino group, so it can players can be aquired at a lower cost.?

Jefferies Group boldly predicts that William Hill’s online gaming business in the United States will be split independently in order to maximise shareholder value.?

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Hence,?analyst James?Wheatcrof?believes that William Hill’s share price is seriously undervalued. As of the 20th, William Hill’s share price is 160 pence per share, and the P/E ratio is only 9.35. Now the target price has been raised to 330 pence, which has doubled the current price.?

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