Pointsbet would be "better off" in the hands of private equity - Jefferies

PointsBet Holdings

25/09/2022 21:58

** Jefferies lower PT on Australian gambling firm PointsBet
Holdings Ltd  PBH.AX  to A$2.30 from A$4.0; retains "hold"
rating
    ** "In today's fraught geopolitical/economic world, PBH
would be better off in the hands of more patient venture
capitalists or private equity firms" - Jefferies
    ** Brokerage says listed investors seem to have limited
appetite for ambitious, cashflow negative plays like PBH
 urn:newsml:reuters.com:*:nRscfs3p4a
    ** Says in United States, since California, Texas and
Florida are likely to legalise online sports betting only in
three years time, cash outflows are unlikely to ameliorate pre
FY25
    ** Jefferies widens PBH's net loss after tax estimates for
FY23, FY24 and FY25 by 11%, 27% and 72%, respectively 
    ** Last month, PBH said its annual net loss attributable
after tax widened to A$267.7 mln from a loss of A$187.7 mln
 urn:newsml:reuters.com:*:nASX5vqrLn
    ** Four of nine analysts rate the stock "buy" or higher,
three "hold" and two "sell" or lower; their median PT is A$3.52
– Refinitiv data
    ** Stock down 71.9% this year, as of last close
 (Reporting by Nausheen Thusoo)
 ((Nausheen.Thusoo@thomsonreuters.com;))