Australia's PointsBet Holdings remains a challenge - Jefferies

PointsBet Holdings

02/05/2022 01:37

** Brokerage Jefferies says gambling firm PointsBet Holdings
 PBH.AX  remains a challenge despite posting Q3 net wins from
Australia consistent with estimates 
    ** PointsBet posted a 54% increase in Q3 sports-betting
turnover and said it continues to expect Australian trading
business to be EBITDA-positive for FY22  urn:newsml:reuters.com:*:nL3N2WR053
    ** Jefferies says like much of its competitors, PBH has 
pivoted into cash-preservation mode and "somewhat" away from 
growth  
    ** Says with net corporate cash down to A$425 mln ($300.60
mln), PBH's balance sheet is at best adequate for next 18 
months 
    ** Says even though fundamental outlook remains challenging
for all cashflow-negative growth stocks, PBH's tech and
Australia/USA customer base would be of appeal to certain media
stocks
    ** Six of 10 analysts covering the stock rate it "buy" or
higher, three "hold" and one "sell"; their median PT is A$6.80 -
Refinitiv data
    ** As of last close, stock had lost 57.5% this year
($1 = 1.4138 Australian dollars)

 (Reporting by Himanshi Akhand in Bengaluru)
 ((Himanshi.Akhand@thomsonreuters.com;))