Goldman Sachs upgraded Entain from neutral to buy on Thursday, raising its price target to GBP10.20 from GBP8.10, citing improved risk/reward following the company’s successful turnaround efforts.

The upgrade follows Entain’s delivery on key elements of its online turnaround strategy, with the company exceeding growth expectations for three consecutive quarters, according to Goldman Sachs.

Goldman Sachs highlighted the strategic pivot at BetMGM and recent trading momentum as factors increasing confidence in the transformation of BetMGM’s profitability and its capacity for cash returns to parent companies.

The resolution of certain overhangs, including the appointment of a permanent CEO, was also cited as a positive development that contributes to the improved outlook for Entain.

Goldman Sachs noted that despite recent share price movements, Entain currently trades at a significant discount to both peers and historical valuations, with the market underappreciating the value of the BetMGM business.