(CercleFinance.com) – The title FDJ (-0.2%) was barely Tuesday on the Paris Stock Exchange after a degradation of Morgan Stanley, which now advises to ‘underweight’ the value.
In a note devoted to the European leisure sector, the research office considers that the risk / return profile of the security is well ‘balanced’ at current levels.
The intermediary adds that the investigation opened by the European Commission generates uncertainty and that online activity, growing but still in the development phase, will force the group to review its relations with distributors.
Morgan Stanley also stresses that the sports betting activity has not yet reached its critical size and that merger and acquisition (M&A) operations could be necessary in order to transform this business into a real engine of growth.
In view of all these elements, Morgan Stanley prefers to reduce its recommendation from ‘weight online’ to ‘underweight’, with a price target lowered from 43 to 39 euros.
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