Oddo BHF maintains its 'neutral' rating on La Française des Jeux shares, with a price target lowered from €36 to €34, as FDJ publishes its half-yearly results on 07/25 after close of trading.

We expect H1 sales to rise by 7.5% to €1,388 million, 2% above the VA consensus of €1,364 million. Our estimate implies sales growth of 7.7% in Q2", stresses Oddo BHF.

The analyst points to regulatory uncertainties, notably in connection with the Kindred acquisition (potential approval is expected by the end of July from the French competition authority (AdlC)) and to a potential increase in gaming taxation in the Netherlands.

According to the broker, the stock nevertheless benefits from a resilient growth profile and a healthy balance sheet enabling a regular return to shareholders.

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