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Paddy Power Betfair downgraded

2017-08-01 14:24:35

With revenues of £1,500.8 million in 2016, the company is among the most profitable betting companies worldwide. In Europe, the company offers both online and offline gambling and has expanded heavily into the Italian market in recent months. This, however, according to Investec, may not be enough when it comes to the stock market.

Regulations hinder increase in share price

According to the Financial Times, Investec, an international asset and banking specialist group, said that "consensus forecasts have yet to adjust to punter-friendly sport results and tougher regulation both in the UK and Australia."

It, however, isn't all doom and gloom for Paddy Power. The specialist company put a £69.70 target on Paddy Power and Paddy Power closed 2.7 per cent lower at £75.40.

Paddy Power may be down 11% from last year but the company remains 50% above its peers within the bookmaking sector. This is the message that Investec is telling its clients.