BUZZ-Citi says earnings risks increasing for Australia's Lottery Corp

Reuters04-01
BUZZ-Citi says earnings risks increasing for Australia's <a href="https://laohu8.com/S/LTRCF">Lottery Corp</a>

** Citi sees downside risk to Lottery Corporation's TLC.AX 2H26 Visible Alpha consensus estimate

** Brokerage says 15% year-on-year lottery turnover growth required in 4Q26 for the lottery operator to hit 2H26 VA consensus turnover

** Brokerage expects weakening consumer environment (i.e. higher fuel and interest rates) to place further pressure on like-for-like sales

** Citi says 2H26 VA consensus EBIT for TLC appears too optimistic unless there is a highly favourable jackpot run; Citi's estimate sits ~5% below consensus

** Brokerage expects new CEO to bring strong digital and cost focus at TLC's investor day, with details provided to potentially shift the revenue and opex outlook

** Citi retains "neutral" rating and A$5.10 target price for TLC

** Nine of 14 analysts rate the stock "buy", five "hold"; their median PT is A$5.80 – LSEG data

** Stock up 4.3% this year, including the day's move

(Reporting by Sherin Sunny in Bengaluru)

((Sherin.Sunny@thomsonreuters.com))

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment