Australia PointsBet faces intense competition, funding constraints- Jefferies

Tabcorp Holdings

06/03/2023 18:42

** Analysts at Jefferies say corporate bookmaker PointsBet
Holdings Ltd's  PBH.AX  growth in Australia has been hampered by
entry of online sports betting app Betr and share gains in peers
Tabcorp Holdings Ltd  TAH.AX  and Sportsbet
    ** PBH on Feb. 28 posted HY net loss after tax of A$163 mln
($109.81 mln) vs a loss of A$136.6 mln a year ago
    ** Brokerage notes ongoing cash-burn and constrained capital
markets are limiting PBH's expansion in the United States 
    ** PBH is a challenging story with intense competition in
Australia, and U.S. funding constraints- Jefferies  
    ** Brokerage suggests sale of co's mature Australia business
to fund its U.S. growth 
    ** Believes PBH will grow with the market and penetrate over
time as brand recognition builds
    ** Brokerage cuts PT to A$1.60 from A$1.85, retains "hold"
rating
    ** Also cuts revenue forecast for FY23 by 2% to A$388 mln 
    ** Two of eight analysts rate the stock "buy" or higher,
four "hold" and two "sell"; their median PT is A$1.61 –
Refinitiv data
    ** As of last close, stock was down 4.1% this year

 (Reporting by Poonam Behura in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com;))