Paddy Power’s shares get thumbs up

INVESTORS should seize the opportunity of the 3.5% drop in Paddy Power’s share price to buy, after a profit warning by British rival Stanley Leisure, according to stockbrokers Dolmen Securities.

The announcement by Stanley Leisure precipitated a 3.6% fall in the value of bookmakers Paddy Power’s shares, but Irish brokers believe the lack of confidence is unmerited. Dolmen analyst Pat Duggan concluded a detailed note to clients yesterday with a buy recommendation: “We continue to be positive on Paddy Power and see the weakness caused by this trading update from Stanley Leisure as a buying opportunity.”

Mr Duggan outlined that Stanley Leisure gave guidance that full year 2003 profits would be below market consensus: “The company blamed a run of bad results in the racing division and a combination of higher costs and negative drop and win growth in Q4 as the cause of gaming profits likely to be only slightly ahead of last year,” he said.