Australia's Lottery Corp needs to reassess capital management, says Morgan Stanley

Lottery

07/09/2022 03:21

** Morgan Stanley says Australia's Lottery Corp Ltd  TLC.AX 
needs to reassess capital management for co to command a
valuation multiple closer to infrastructure peers
    ** Adds that a move to a progressive dividend policy, which
is better aligned to free cash flow per share, would create a
more predictable dividend, enhancing shareholder returns and
support valuation  
    ** "We like the defensive nature of group's business model,
albeit acknowledge concerns on the YTD performance of
lotteries," MS says
    ** Brokerage reduces 2023 EBITDA forecast by 4%
    ** Six of 10 analysts rate the stock "buy", four "hold";
their median PT is A$4.65 - Refinitiv data
    ** Lottery stock down 2.1% at A$4.290
    ** As of last close, stock down 6.8% this year since its May
debut
 

 (Reporting by Jaskiran Singh in Bengaluru)
 ((Jaskiran.Singh@thomsonreuters.com;))