Two UK Market Gaming Stocks for BIG Growth

Even amid a cost of living crisis, gambling stocks are on the rise, propelled in part by an increase in online gambling during COVID lockdowns – we’ve picked two London-listed stocks who are in the lead.

Flutter Entertainment gaming company (GB: FLTR) and gaming software company Playtech (GB: PTEC) are the two gambling stocks analysts are bullish on.

We used the TipRanks stock comparison tool to list and compare gaming stocks based on analyst ratings and target prices. This tool can be used by investors to compare up to seven stocks at once on different metrics.

Let’s discuss stocks in detail.

Floating Entertainment Stock

Flutter is a gaming and sports betting company with popular brands such as FanDuel, Sportsbet, Betfair and PokerStars under its umbrella.

The company’s operations are diversified globally, which provides a cushion during difficult times in the UK.

Last month, the company announced its interim results for 2022 with revenue growth of 9%, driven by average monthly players which increased by 14%.

However, pre-tax profit fell 19% to £476m.

The company has shown fairly solid growth in the US market. The region is a hub for sports betting customers and Flutter’s market share has grown to 51% in the market with market-leading FanDuel products.

With the start of the football season in the United States, Flutter is well positioned for solid revenue growth in this market. The company expects revenue in the US market to be above its guidance range of £2.3 billion and £2.5 billion in the second half of 2022.

Is Flutter Entertainment a good stock to buy?

According to analysts’ rating consensus from TipRanks, Flutter Entertainment stock has a strong buy rating. It includes 13 recommendations including 12 to buy and one to hold.

The FLTR target price is 13,993p, which represents a 30.5% change in price from the current level. The price has a low and high forecast of 12,800p and 15,800p, respectively.

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Playtech Stock

Playtech is a leading developer of gaming and betting software, providing solutions for casinos, bingo, poker, sports betting, and more.

Being the backbone of the gaming industry, the company is strategically placed to weather tough economic times.

Shares of the company have been on a rollercoaster since November 2021, when it received a takeover deal from Gopher Investment. The deal was then scrapped in July this year, sending shares down 18%.

In its annual results for 2021, the company posted 12% revenue growth driven by B2B business in the United States. In the B2C segment, Snaitech, which was acquired by Playtech in 2018, drove the company’s online performance with revenue growth of 45%.

Snaitech is the leading sports betting company in Italy.

Given the company’s strong business momentum with some long-term partnerships, management is very positive about the FY2022 numbers.

Playtech stock price prediction

According to TipRanks analyst rating consensus, Playtech stock has a Moderate Buy rating.

The PTEC price target is 576p, implying a 20.7% upside. The analyst’s price target has a high forecast of 602p and a low forecast of 550p.

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Conclusion

The gaming industry presents an attractive investment option due to its tremendous growth. However, these stocks are also volatile in nature, thanks to strict regulations and fierce competition in the industry.

Disclosure