One More Thing:Winner all right was the theme of Paddy Power's interim trading statement yesterday. The bookie enjoyed a bumper first six months, helped by favourable sporting results, particularly from the Royal Ascot race meeting.
The first half of the year has traditionally always been the strongest trading period for Paddy Power. This was "particularly pronounced" this year, the bookie said.
Barring a mishap in the remainder of the year, the bookmaker expects to post an operating profit for 2007 of €62 million, an increase of 36 per cent on 2006. The company had previously guided €58 million for this year. Goodbody and Bloxham were quickly out of the stalls to update their forecasts.
Goodbody has raised its 2007 full-year earnings per share (EPS) forecast from 99 cent to 106 cent while its price target has moved up by 80 cent to €24.80.
Bloxham, meanwhile, is slightly more bullish with its EPS forecast, pencilling in 107 cent for 2007. It's a tad more cautious, however, with its price target, which has increased to €24.50.
The revised price targets offer upside of 6-7 per cent on the current share price. With the online business going from strength to strength, it looks like an attractive gamble for investors.
