Panmure Gordon has raised its target price for online gaming group 888 Holdings after the company revealed details of their record fourth quarter on Monday morning.

Reported fourth-quarter net income rose 7.0% to $97.5m, slightly ahead of Panmure's $96.1m estimate.

The broker also noted 888's current-trading comments, that the year has started strongly with daily average revenue up 7.0% year-on-year in January, helped mainly by Poker and newly-regulated markets.

Analysts highlighted the "tremendous opportunities" available to 888 in 2013: "The most high profile of these is the group's real money offering on Facebook's UK platform although regulatory change in Spain and Italy combined with the high levels of adoption of touch (mobile and tablets) played products offer equally good potential in our view."

Panmure has raised its earnings forecasts for 2012 and 2013, saying that the stock offers "good forecast upgrade potential".

The broker has kept its 'buy' recommendation for the shares, saying that the stock is "inexpensive given the group's forecast-beating performance and growth potential in regulated and regulating markets."

The target price has been nudged up from 143p to 145p, implying 18% potential upside from current prices.

Despite the upbeat comments, shares were down 3.12% at 118.93p by 10:45.

BC

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