Citi ups TP, upgrades view on Australia's Lottery Corp

Lottery

03/06/2024 20:14

** Analysts at Citi raise target price for Lottery
Corporation  TLC.AX  to A$5.60; upgrades rating to "Buy"
    ** Brokerage raises casino and gaming co's 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 from the current 80-100% range while
retaining flexibility to debt fund a Victorian licence renewal
payment of up to A$1 billion ($667.10 million)
    ** 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))