FDJ is down more than 1% in Paris, as Oddo BHF confirmed its 'neutral' rating on the stock this morning, with its target price lowered from €36 to €34. FDJ is due to publish its half-yearly results after the close of trading on July 25.

We expect H1 sales to rise by 7.5% to €1,388m, 2% above the VA consensus of €1,364m. 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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