Zeal Network Is A 'safe Bet': Jefferies starts with 'buy'

ZEAL Network SE

16/02/2022 12:44

** Jefferies initiates ZEAL Network SE  TIMAn.DE  with "buy"
and PT of 47 euros, saying it expects the German provider of
lottery products to benefit from an ongoing shift towards online
gambling and limited competition in the state lottery market
    ** Jefferies says the company offers "the broadest range of
lottery products when compared with peers" and should hence
benefit from increasing online penetration 
    ** New products such as games and ZEAL's own lotteries
should significantly increase revenues and EBITDA margins, the
broker says
    ** Moreover, it notes that new products generate higher
revenues for the same billing amount, which should also lead to
significantly higher margins
    ** "The current share price does not incorporate the
imminent portfolio expansion," the brokerage adds
    ** Among key catalysts for the stock, Jefferies mentions Q4
results, Future Jackpot peaks, games licence approvals and
potential pay-out of an around 54 million euro ($61.41 million)
lawsuit

($1 = 0.8794 euros)

 (Reporting by Ana Cantero)
 ((ana.canteroros@thomsonreuters.com))