Online Casino Receives Much Needed Boost
I would imagine that the people over at Party Gaming were thrilled to hear the positive projections of HSBC, one of the largest banking groups in the world. The company has lifted the online casino operator’s share price target to 122p. Additionally, HSBC experts also predict that there is a good chance that the online casino operator will also show 30% rise on the share price potentially bringing it to 94p. These are great news for the online casino which has seen its share price drop considerably from its July high of 179p.
Richard Wainwright, analyst for HSBC explains, “We expect continued growth for the online casino from its current core market, benefits from the data mining project started this year and new online casino game offerings will drive top-line growth”. The online casino company’s stock took a 30% tumble as a result of the pessimistic remarks made by the company’s CEO. Wainwright also claims that the doomsday prediction regarding the online casino industry have been somewhat premature and uncalled for.
Wainwright also discusses Party Gaming in particular saying, “Party Gaming’s de-rating has nevertheless had a significant impact on the sector. As a result, we believe the online gaming sector is now relatively undervalued versus its growth rates”. The question on the minds of every online casino business analyst is whether or not Party Gaming will move ahead in its plans to acquire Empire Online. The rival online casino operator has seen its share price drop considerably bringing down the overall value of Empire Online to 180 million.