Australia's Lottery Corp rises after Citi upgrades rating, price target

Lottery

04/06/2024 05:18

(Adds shares and milestones)
    ** Shares of Lottery Corporation  TLC.AX  rise as much as
2.9% to A$5.040, their highest since May 24
        ** Analysts at Citi raise target price for the casino
and gaming company to A$5.60 from A$5.50; upgrades rating to
"buy" from "neutral"
    ** Brokerage raises earnings before interest and taxes
(EBIT) forecasts by ~6% in FY24 and ~2% in FY25
    ** Citi says co has room to raise its dividend payout ratio
to up to 120% of NPAT while still retaining flexibility to debt
fund a Victorian licence renewal payment of up to A$1
bln($667.10 mln)
    ** Brokerage says co's relatively resilient earnings profile
and room for higher dividends should appeal to investors looking
for defensive exposure
    ** Seven of 14 analysts rate the stock "buy" or higher and
seven "hold"; their median PT is A$5.55 – LSEG data
    ** Stock has risen 1.2% this year, as of last close

($1 = 1.4990 Australian dollars)

 (Reporting by Sherin Sunny in Bengaluru)
 ((Sherin.Sunny@thomsonreuters.com))