Australia's Jumbo Interactive can achieve strong ROIC with StarVale deal - MS

Jumbo Interactive

28/01/2022 04:37

** Morgan Stanley confident that Australian lottery games
retailer Jumbo Interactive  JIN.AX  can benefit from the
acquisition of UK-based StarVale
    ** JIN said on Thursday it would buy the external lottery
manager and digital payments firm for A$32.1 mln ($22.6 mln),
with potential for A$7.5 mln-A$8.5 mln of milestone payments
 urn:newsml:reuters.com:*:nASX68Jth8
    ** MS ("overweight", A$21.20 PT) says JIN's long-term
customer base execution to date with Gatherwell provides
confidence that it will achieve strong incremental return on
invested capital (ROIC) from StarVale
    ** JIN had bought Gatherwell, another UK-based lottery
manager, in Nov. 2019
    ** 3 of 6 brokerages rate the stock "buy" or higher, 3
"hold"; median PT A$17.60
    ** Up to Thursday's close, stock down about 9% this year

($1 = 1.4227 Australian dollars)

 (Reporting by Shashwat Awasthi)
 ((Shashwat.Awasthi@tr.com
mailto:Shashwat.Awasthi@thomsonreuters.com))