While most industry analysts have cut their targets for the poker site operator, eGaming Review reported that Dresdner Kleinwort has issued a buy note after testing liquidity levels during peak European playing time.
“Overall, PartyPoker has maintained a competitive liquidity advantage over the majority of its peers. PokerStars has, however, unsurprisingly managed to overtake it as the largest poker site in both US and European peak times,” said Dresdner Kleinwort.
DKIB also said PartyGaming\’s strong liquidity in the fast-growing European market provides the company with a significant base from which it could cross-sell and acquire customers.
Elsewhere, UBS and Panmure Gordon have cut their forecasts for the online poker group as they believe distribution costs will rise while revenues from rake and tournament fees will go down more than 80 per cent.
“Liquidity drives revenues and Party will likely lose its market lead position,” commented Julian Easthope, analyst at UBS. “Retaining small players is vital to attract big-pot regulars. Operators typically generate 70% of revenues from just 30% of players.”
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