Peel Hunt selects 888 as top growth stock for 2021
London-listed operator the sole gambling stock among 41 companies including Ocado and ASOS
UK investment banking specialist Peel Hunt has selected online gambling operator 888 Holdings as a major growth stock for the coming year.
After a tumultuous financial year in 2020 due to Covid-19, Peel Hunt analysts have picked 41 top growth stocks for 2021, covering 13 sectors with an average market capitalisation of £870m.
The chosen businesses range in market cap from online grocery service Ocado at £17.4bn down to restaurant operator Loungers at £228m.
888 is the only gambling firm to have made the list.
The operator – led by CEO Itai Pazner – was selected due to its maturing technology investments, healthy cash balance and improving access to the high growth US market.
Peel Hunt analyst Ivor Jones wrote: “All the ingredients are in place. 888 has been delivering strong, geographically broad, organic revenue growth.
“It has material upside potential from upgrades to its in-house technology platform and from finding a killer deal in the US.
In addition, once Caesars has acquired William Hill, it may get a chance to reprise its 2016 attempt to acquire William Hill’s European online business.
“It is well-placed to continue to deliver positive upside surprise on growth,” he added.
888 finished ninth for the second consecutive year in 2020’s EGR Power 50 Rankings.