07:58 AM EDT, 04/27/2026 (MT Newswires) -- Berenberg made "marginal"downgrades to its estimates for Evolution AB (EVO.ST), noting the company's softer performance in Europe following its first-quarter results.

In the first quarter, the Swedish online gambling company's net revenues stood at 513 million euros, meeting consensus estimates but down from 520.9 million euros a year ago, according to a Monday note. Profit was 251.9 million euros, compared with 254.7 million euros earlier.

For full year 2026, Berenberg expects the company's revenue to grow 1%, with margins set to deteriorate to 65%.

"Evolution's operational performance remains challenged, and we bring down our estimates to reflect a softer performance in Europe in the first quarter of the year. While Asia has recently returned to qoq growth, revenues remain lower yoy which we expect to be the case in Q2. With cost growth outpacing revenue growth, we remain below management's start-of-year guidance and expect the margin to contract yoy,"Berenberg said.

The research firm maintained its hold rating and price target of 560 kronor.