Jefferies Group one of the world’s leading full-service investment banking and capital markets firms has named Flutter Entertainment as its top UK pick in the European gaming sector.

In a report on Tuesday, the broker said it remains positive on the whole European gaming sector. M&A remains dynamic recent deals highlight a valuation disconnect to public markets, especially in Europe,” Jefferies said.

As for Flutter, its recent move to a US primary listing has created a “short-term catalyst path” with the company’s “continued market dominance despite an increasingly competitive backdrop.” It has a 19,500p target price for the UK-listed shares, which implies 18% upside on current levels.

“Consequent comparison with US-listed, high growth, digital peers shows a material valuation disconnect: 16.6x EV/EBITDA versus 18% compound EBITDA growth contrasts with peers on materially higher multiples.”