Australia's Tabcorp Holdings hits over 15-year high; MS upgrades rating

Tabcorp Holdings

23/05/2023 03:18

** Shares of Tabcorp Holdings Ltd  TAH.AX  rise as much as
5.5% to A$1.155, hitting their highest since March 25, 2008
    ** Morgan Stanley upgrades rating to "overweight" from
"equal-weight", raises price target to A$1.30 from A$1.08 
    ** Morgan Stanley expects co's Victoria wagering licence to
be renewed around mid-2023, ahead of its expiry in mid-2024 
    ** MS reduces its FY25 operating expenditure forecast to
A$630 mln ($427.33 mln) as it expects TAH to implement cost
cuts, including reducing TV ad spending and staffing
    ** Brokerage sees 30% of savings under co's cost-out
programme to come from reduction in headcount over time 
    ** See meaningful upside to TAH's future earnings trajectory
if it maintains the Victoria retail licence
    ** Stock posts its biggest intraday percentage gain since
Feb 21
    ** Six of 13 analysts rate the stock "buy" or higher, four
"hold" and three "sell" or lower; their median PT is A$1.10–
Refinitiv Eikon data 
    ** Stock up nearly 2% this year, as of last close

($1 = 1.4743 Australian dollars)

 (Reporting by Navya Mittal in Bengaluru)
 ((navya.mittal@thomsonreuters.com))