Playtech Share Price Undervalues Investment Portfolio, Peel Hunt Analysts Report

Investment Portfolio Analysis

The aggregate balance sheet valuation of Playtech’s investments stood at £3.22 per share in the first half of 2025, but Peel Hunt believes this could reach as high as £5.93 per share or fall as low as £2.50.

The analysts highlighted that Playtech does not need every investment to pay off, noting it needs only one Caliente Interactive-scale win from its 14 other investments to transform the current valuation.

Sports Data Strategy

The analysts identified an emerging investment strategy around sports data as another area of hidden potential. Playtech holds a 49% stake in LSports, alongside positions in other sports data and news businesses including Algosport 123, Sporting News and Stats International.

Evolution Litigation Risk Assessment

Peel Hunt addressed the potential risk from litigation initiated by Evolution, which on 21 October announced court proceedings had identified Playtech’s role in commissioning a report into Evolution. The Swedish company said it intended to amend its complaint to include Playtech as a defendant in the continuing lawsuit.

The analysts’ base case assumes the matter will be settled at relatively modest cost. In their bear case valuation, they incorporated a potential €50m cost to Playtech, while their bull case factors in a potential €50m benefit if Evolution faces difficulties retaining licences and commercial relationships.

The case most recently saw Evolution ordered to release documents related to regulatory investigations into the business, which led to it filing a protective order to prevent "proprietary information" from being revealed. Private intelligence firm Black Cube responded to this by arguing the information is not secret, and that Evolution is attempting to litigate the dispute in public while blocking the defendants from doing the same.

Valuation Scenarios

Even Peel Hunt’s bear case valuation of £5.56 per share sits well above Playtech’s current share price of £2.88, while the base case of £6.91 underpins the new target price. The analysts’ bull case scenario reaches £10.20 per share.

Playtech’s share price has been trading at £2.88, giving the company a current market capitalisation of around £889m.

Source: NEXT.io