FDJ: Deutsche Bank raises its buy recommendation

(CercleFinance.com) - On Tuesday, Deutsche Bank raised its recommendation on the Française des Jeux share from 'hold' to 'buy', while also raising its price target to 42 euros from 38 euros.


In a note, the research firm 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 rationalize costs.

With the addition of a few synergies, players who have opted for such consolidation moves have generally been able to grow their profits, he points out.

From Deutsche Bank's point of view, FDJ's €2.5 billion acquisition of Kindred follows a "different logic".

Formalized last January, this operation, which is currently proceeding "at a slow pace" according to the intermediary, 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.

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