Up 7% on Monday, the Française des Jeux share price is on a roll, following the announcement of a takeover bid for Kindred, a Nasdaq Stockholm-listed company that operates the Unibet online betting and gaming brand.

This offer, at a price corresponding to an enterprise value of 2.6 billion euros for Kindred, is unanimously recommended by the target company's board of directors. It will open on February 19 for a maximum period of nine months.

We see this as a positive step, given the scale it would give to FDJ's online activities, particularly in a highly competitive market where building brands organically is extremely difficult," says Stifel.

Also highlighting FDJ's above-consensus sales and EBITDA margin on the back of a solid fourth-quarter performance, the broker maintains its 'buy' recommendation and €38 target on the stock.

Copyright (c) 2024 CercleFinance.com. All rights reserved.