Australia's Tabcorp rises; MS hikes PT on co's new monetisation plan

Tabcorp Holdings

03/06/2025 02:25

** Tabcorp TAH.AX rises 5.1% to A$0.725, highest since May 27

** Morgan Stanley highlights gambling firm's value-creation potential through strategic shift to boost retail monetisation

** Hikes PT to A$0.78 from A$0.70; reiterates "overweight"

** Notes co's plan to cut commissions to venue partners like pubs and clubs signals shift in commercial monetisation strategy

** Flags upside risk to FY26 consensus estimate, driven by re-allocation of promotional spend and capex towards retail rather than reinvesting savings

** Sees co's unique offerings, like in-venue in-play betting in New South Wales, as key opportunities to maximise retail license potential

** YTD, TAH gains ~28%

 (Reporting by Kumar Tanishk in Bengaluru)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))