Allwyn is entering a new phase of growth, with Solidus Securities initiating coverage of the stock with a “Buy” and a target price range of €14.5–17, implying upside potential of 10% to 23% relative to current trading levels.
In its analysis, the brokerage firm characterizes the first quarter of 2026 as “transformative,” emphasizing that the new corporate structure resulting from the merger of Allwyn International with OPAP confirms the group’s ability to operate effectively across multiple markets and activities simultaneously.
Solidus estimates that the current share valuation continues to reflect a discount relative to its fair value, despite the fact that the company reported a 21% increase in revenue and a 24% increase in adjusted EBITDA in the first quarter. At the same time, management confirmed its target for a 37% EBITDA margin in 2026 and revenue growth in the mid-to-high 20% range on an annual basis.
Particular emphasis is placed on the key growth drivers for the coming years. The completion of the UK National Lottery’s technological transformation is expected to lead to a gradual recovery in profit margins, while the upcoming launch of Powerball in the UK market—for the first time outside the U.S.—is seen as a significant catalyst for revenue growth.
At the same time, the acquisition of PrizePicks strengthens Allwyn’s presence in the United States, adding a high-growth business with strong cash flows, while the continued rise of iGaming in continental Europe remains another key pillar of growth.
Solidus also highlights the significant contribution of Betano, which recorded a 43% increase in net profits in the first quarter and paid a dividend to Allwyn for the first time.
The brokerage believes that the gradual deleveraging following the acquisition of PrizePicks, the further expansion of digital operations, and the establishment of a unified global brand could lead to a revaluation of the stock in the coming years.
Furthermore, the shareholder capital return policy, featuring a €150 million share buyback program and a minimum annual dividend of €1 per share, offers a dividend yield exceeding 8%, a factor that serves as a strong support for the valuation.
“The new Allwyn is delivering, growing, and returning value,” concludes Solidus, noting that the group has all the necessary resources to evolve into one of the leading global players in the gaming and lottery sector.