Berenberg Affirms Lottomatica's Buy Rating Amid Cirsa Merger Deal

06:21 AM EDT, 09/10/2026 (MT Newswires) -- Berenberg reiterated its buy rating for Lottomatica Group (LTMC.MI), saying the Italian gaming operator's proposed all-share merger with Spanish peer Cirsa Enterprises (CIRSA.MC) "makes strategic sense." "M&A has long been a talking point for Lottomatica, but the timing and the size of this deal came as a surprise to us and investors. At a pre-synergy acquisition multiple of 6x 2026E EV/EBITDA, the deal is accretive to EPS, gives the combined entity market-leading positions in nine markets and it diversifies Lottomatica's growth profile," analysts said Thursday. The research firm added that the deal is also "compelling for shareholders on several fronts" as it estimates 247 million euros in additional cash returns for Lottomatica shareholders via dividends and buybacks through 2030 through their 67.5% stake in the combined entity. "Our pro-forma model implies the combined entity would trade on 7.0x EV/EBITDA and 11.0x P/E, against listed B2C peer averages of 8.0x and 17.3x respectively," analysts noted. Berenberg left its sales, adjusted EBITDA, and EPS projections for 2026 through 2028 unchanged. The stock's price target was also maintained at 31.50 euros.