Australia's Tabcorp's growth likely to remain softer in June quarter - Jefferies

Tabcorp Holdings

05/05/2023 04:50

** Jefferies expects more challenged top-line growth for
Australia's Tabcorp  TAH.AX  for this quarter given competitive
intensity, says growth likely to remain softer in June quarter 
    ** Brokerage says competitive intensity remains heightened
looking at the gambling platform operator's peers 
    ** Competitive intensity will lead to higher generosities
across the gambling industry, and international players have
higher margin to use on generosities - Jefferies  
    ** Brokerage rates the stock "buy", while maintaining price
target at A$1.49
    ** Jefferies, however, says it has become increasingly
confident in TAH's improved position 
    ** Brokerage says parliamentary transcripts reveal that the
Victorian (VIC) government has proposed gambling reform that
includes increasing the Point of Consumption Tax rate from 10%
to 15% 
    ** Jefferies says this change in tax will continue to level
the playing field for TAH as its burden of industry funding and
taxation is reduced compared to co's  competitors
    ** Five of 13 analysts rate the stock "buy" or higher, five
"hold" and three "sell" ; their median PT is A$1.09 – Refinitiv
data
    ** TAH stock nearly flat this year, as of last close

 (Reporting by Nausheen Thusoo in Bengaluru)
 ((Nausheen.Thusoo@thomsonreuters.com;))