Morgan Stanley initiates coverage of The Lottery Corp at 'overweight' on "monopoly positioning"

Lottery

25/05/2022 01:52

** Brokerage Morgan Stanley says The Lottery Corp  TLC.AX ,
which was recently demerged from Tabcorp Holdings  TAH.AX ,
holds "monopoly positioning" in the states and territories where
it operates as a lotteries operator 
    ** TLC began trading on the ASX on Tuesday, where shares
opened at A$4.61 apiece and closed at A$4.70 
    ** Morgan Stanley initiates coverage with "overweight"
rating and A$5.15 price target 
    ** "TLC ... offers a rare combination of defensiveness,
growth and yield," brokerage says 
    ** Explains that co's defensive income profile given the
CAGR of Australian lotteries, the validity of its lotteries
licenses until ~2047, and its nature as one of only two listed
pure-play lottery operators globally make it an attractive stock
    ** Adds that the above-mentioned factors warrant a valuation
premium 
    ** Shares up 0.5% at A$4.725 in early trade 

 (Reporting by Harshita Swaminathan)
 ((Harshita.Swaminathan@thomsonreuters.com))