Jefferies cuts PT on Australia's Pointsbet, but sees strong 2023

PointsBet Holdings

06/01/2023 04:58

** Jefferies cuts price target on online bookmaker Pointsbet
Holdings  PBH.AX  to A$1.85 from A$2.30 on lower comparables and
low active U.S. clients
    ** Brokerage, however, expects a strong 2023 on the back of
robust sporting events and easing of promotional activities in
the United States
    ** Expects FY23 revenue of A$398.1 mln ($269.71 mln), and
A$583.6 mln in FY24, significantly higher than the A$291.6 mln
logged in FY22
    ** Also forecasts adjusted net loss narrowing to A$245 mln
by FY24 from A$284 mln in FY22
    ** However, does not expect growth momentum seen in 1H23 to
continue into 2H23 as macro environment in the United States
deteriorates
    ** Retains "hold" rating, citing "significant" funding
uncertainty
    ** PBH down as much as 4.2% at A$1.605, marking its worst
day since Dec. 23, 2022
    ** Two of eight analysts rate the stock "buy" or higher,
four "hold" and two "sell;" their median PT is A$2.20 –
Refinitiv data
    ** PBH down 79% pct in 2022, but up 9% so far this year
($1 = 1.4760 Australian dollars)
 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))