JP Morgan says Australia's Pointsbet getting closer to a tough spot

PointsBet Holdings

01/05/2023 03:31

** JP Morgan says Pointsbet Holdings Ltd  PBH.AX  "has done
very well this quarter, but is closer to an increasingly
difficult decision"
    ** Bookmaker Pointsbet on Friday reported third-quarter
gross revenue, adjusted for all payouts and participation fees, 
up 39%
    ** Brokerage says while adj gross revenue performance has
been in-line with management's forecasts, a deep dive of
Australian business shows overall market softening and
diminishing market share and customers 
    ** "Looking further afield, PBH has less than four quarters
of cash remaining and there is a lot relying on a sale of the
U.S." - JP Morgan analyst Don Carducci
    ** Retains 'underweight' rating and price target of A$1.05
    ** 2 of 7 analysts covering the stock rate it "buy" or
higher, 4 "hold" and 1 "sell" or lower; their median PT is
A$1.61 – Refinitiv data
    ** Stock has risen 4.4% this year as of last close

 (Reporting by Mehr Bedi in Bengaluru)
 ((Mehr.bedi@thomsonreuters.com))