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Paddy Power Betfair no longer worth a punt following share price rally

The shares have rallied to 8,360p after falling as low as 6,850p in early May

pADDY pOWER betting shop
Numis thinks the bookmaker's share price is now up with events

The share price of Paddy Power Betfair PLC (LON:PPB) has come up fast on the rails and is now up with events, Numis says.

The broker has moved to 'hold' from 'add' after the shares rallied around one-fifth from their recent low.

READ: US gambling shake-up stakes: the runners and riders​

The company remains well-placed from a US perspective, where the sports betting scene is being liberalised, but the broker's key pick in the sector remains GVC Holdings PLC (LON:GVC).

As for the UK, bookies were hit for six last month when the betting industry's worst-case scenario unfolded following the Department for Digital, Culture, Media & Sport's (DCMS) decision to cut the maximum stake on fixed odds betting terminals (FOBT) to £2 from the current £100 in a bid to curb problem gambling.

“Following the DCMS's verdict on FOBTs published in May 2018, we have assumed the £2 maximum stake is introduced in 2020 and have updated our sector forecasts accordingly,” Numis said.

Shares in Paddy Power were up 1% at 8,360p.

Quick facts: Flutter Entertainment PLC

Price: 8976 GBX

LSE:FLTR
Market: LSE
Market Cap: £7.03 billion
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