Analysts are expected to upgrade earnings for online gaming company 888 Holdings after a reassuring trading update.

The owner of the Casino-on-Net and Pacific Poker brands, said it was trading in line with its own internal expectations.

Numis Securities analyst Richard Carter, said: 'Although we are not upgrading our top-of-the-range forecast we think the rest of the market will be, and that this will act as a share price catalyst'.

Shares put on 1p, or 1%, to 130 pence against wider market falls. The company added it remains confident about prospects for the full year.

888 gave its trading update prior to entering the closed period in respect of its results for the year ended 31 December. Numis' Carter reiterated his 'buy' recommendation and 174 pence price target.

Carter said the regulatory landscape is getting clearer and that the group's current valuation is 'unjustified given the level of cash generation and growth'.