Paddy Power rating cut to ‘underperform’

Davy Stockbrokers has downgraded its rating on the Paddy Power stock, citing slow market growth in Italy, a declining customer base for its online operation, and potentially faltering returns in the UK retail segment.

The move drove the company’s share price down by more than 6% in early trading yesterday, representing its biggest daily fall in seven months. It closed down 5.7%.

Just last month, the leading Irish bookmaker reported record annual pre-tax profits of €139.2m for 2012, but warned that continuing negative exchange rate patterns could hit operating profits by around €10m this year.