Playtech (PTEC LN, BUY, T/P 861p) - Update | Looking for a significant catalyst
Management flagged M&A when presenting final results with a focus on regulated markets. Also flagged comfort with leverage of 1-2x Net debt/EBITDA. On our FY18E EBITDA forecast of €341m and with forecast net cash of €356m it implies taking on debt of up to c.€1bn. Adding in the liquid holding in Plus500 and LCL LN (£345m) of €390m would give PTEC up to c. €1.6bn of firepower for M&A. A debt funded deal in regulated gaming would increase earnings between 31% and 42%, demand a higher rating for the shares.
Whitman Howard is an independent institutional stockbroking and investment banking business focused on servicing the needs of our corporate clients and institutional investor base.
The company began trading in 2011 with a team of highly experienced market professionals and the goal of building a leading capital markets business in an entrepreneurial environment.
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