Investmant bank JP Morgan released a report this week looking at the fundamentals of Ladbrokes plc, which is due to release its first-half results on August 7.
The report included the following conclusion: “Trading continues to be robust but we are concerned that Ladbrokes’ greater mainstream consumer exposure is more sensitive to the impending consumer slowdown.” The report also noted: “Trading in May and June has been a bit weaker with an expected loss from the European Championship after a strong performance by the favorite teams.”
Repeating its neutral rating and 345p price target on the shares, JP Morgan added that business in the UK and Ireland is likely to continue to drive earnings in 2008.
Ladbrokes is the largest betting company in the UK and largest retail bookmaker in the world, operating over 2,200 retail betting shops divided between the UK, Ireland and Belgium. It is a member of the FTSE 250 Index, having been relegated from the elite FTSE 100 Index in June 2006.