Ladbrokes confident of hitting its targets

Market speculation has knocked the share recently, as traders’ fears over unexpected losses have taken their toll.

Over the last three days, rumours surrounding Ladbrokes’ losses in 2013 have wiped over 6% off the share price. Speculation has reached such a level that the company has been forced to make a statement confirming it is still on course to meet year-end targets.

The most obvious sporting event that will have cost Ladbrokes was this summer’s Wimbledon win for Andy Murray. A British favourite finally triumphing at one of the world’s most prestigious sporting events was always likely to be heavily backed. That said, of course, it has taken over seventy years for this to happen.

The largest part of Ladbrokes’ sporting business relates to football and horse-racing. As far as the English Premiership is concerned, this is arguably the most competitive season we have seen for many years. There has been no clear favourite, and all of the big four have stumbled at least twice in the first eleven games of the season. This uncertainty should be good news for Ladbrokes, as no clear patterns are emerging and more teams appear capable of beating the historical league favourites than in previous years.

Nevertheless, institutional brokers remain pessimistic, with only two ‘buy’ recommendations for Ladbrokes from the 22 analysts we reviewed.

Ladbrokes plc chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.