July 2, 2019 / 1:44 PM / 3 months ago

BUZZ-UK online gaming sector "poised for consolidation" - Deutsche Bank

** Deutsche Bank starts coverage of British gaming stocks

** DB gives “buy” rating for GVC, JPJ Group and William Hill

** Rates “hold” on 888 and Playtech

** “We view the recent sell-off in the online gaming sector as an opportunity to invest in cheap internet-driven companies that target structural growth markets and also trade at a deep valuation discount,” DB says in a note

** “These companies offer high margins, and in aggregate, they offer a 10% EBITDA CAGR over the next two years,” DB says

** DB: “We see the scope to create value from another wave of consolidation, with rising regulatory and marketing costs encouraging a drive for scale, given material cost synergies” (Reporting by Justin George Varghese in Bengaluru)

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