FDJ: share rises on Deutsche Bank upgrade

(CercleFinance.com) - Française des Jeux shares were holding the silver medal on the SBF 120 index on Tuesday morning in Paris, following an upgrade by analysts at Deutsche Bank.


At 9:15 am, FDJ shares were up over 2%, while the SBF 120 index was barely rising at all (+0.1%).

In a note issued early this morning, Deutsche Bank said it has upgraded the stock from 'hold' to 'buy', and had also raised its target price for it to E42 (from E38).

The broker points out that the online gaming sector has seen its share of mergers in the past, generally motivated by the desire to share technology platforms, pool marketing expenses and streamline costs.

By adding a few synergies, players who have opted for such consolidation moves have generally been able to grow their profits, it points out.

Deutsche Bank says that the French group's acquisition of Kindred for E2.5bn follows a "different logic".

Formalised last January, this operation, which is currently proceeding "at a slow pace, Deutsche Bank says, must still obtain the green light from the French authorities in November, and also be approved by at least 90% of the target's shareholders, the broker points out.


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