Tabcorp's small lotteries draws have strongly outperformed historical averages. Ord Minnett forecast FY20 lotteries revenue of $2.63bn, a reduction of -0.5% on a year ago.
Online sales have remain resilient because of the migration to digital from retail. Still, retail remains the dominant channel. The broker maintains a Lighten rating and $2.10 target.
Sector: Consumer Services.
Target price is $2.10.Current Price is $3.45. Difference: ($1.35) - (brackets indicate current price is over target). If TAH meets the Ord Minnett target it will return approximately -64% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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