Entain PLC (LSE:ENT), the owner of bookmakers Ladbrokes and Coral, has a new chief financial officer with a clear agenda: tighten costs and convert more profits into cash.
Michael Snape, who took the role on 6 March, having previously served as group CFO at delivery company IDS and in senior finance positions at Boots and Tesco, has been meeting City analysts for the first time since his appointment.
Deutsche Bank raised its target price to 1,055p from 1,029p and kept a ‘buy’ rating on the shares after meeting Snape.
Analysts said the new CFO had signalled that cost optimisation should be a routine part of running the business rather than a one-off exercise.
Snape also flagged cash conversion as a key priority alongside earnings growth.
Entain said at its interim results that efficiency measures would offset more than half of the incremental tax burden from UK gambling duty changes coming in 2027.
The shares closed at 588.80p, leaving them trading at a steep discount to Deutsche Bank’s target.