JPMorgan has upgraded Entain stock rating from Neutral to Overweight while adjusting its price target to GBP10.90 from GBP11.50, citing the company’s resilient market share momentum.

The investment bank noted Entain’s solid third-quarter performance with 6% organic online growth despite lapping easier comparisons, suggesting sequentially improving underlying momentum. In the UK specifically, Q3 Online NGR growth reached 15% (Sports +19%, Gaming +14%) following 21% growth in the first half.

The United States, Entain’s second-largest market representing 14% of group NGR, has regained momentum over the past year. This improvement is partly attributed to a revised strategy targeting premium mass players in sports betting rather than directly competing with industry leaders FanDuel and DraftKings.

Product improvements including Angstrom integration across all pre-game sports, a new Nevada app launch, single app/wallet U.S. roll-out, and various marketing agreements with X and Bonvoy appear to be driving strong topline momentum for the company.

JPMorgan expects BetMGM, Entain’s joint venture, to reach its $500 million EBITDA target by fiscal year 2027, with the bank’s own estimate at $601 million. Starting this year, BetMGM will distribute most of its EBITDA to both parent companies after a £50 million annual capital expenditure.