Morgans has begun to closely monitor the performance of key Australian national lottery games like Oz Lotto and Powerball to estimate jackpot revenue.

Jackpots larger than $15m are a key focus for the broker as they are key growth drivers for Lottery Corp and Jumbo Interactive, which come under Morgans research coverage.

The analyst lowers FY24 earnings (EBITA) estimates for both these companies by -4% in the expectation of lower values per draw, despite an increased number of jackpots.

The target for Lottery Corp falls to $5.40 from $5.50. Add.

Sector: Consumer Services.

Target price is $5.40.Current Price is $4.85. Difference: $0.55 - (brackets indicate current price is over target). If TLC meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2023 Acquisdata Pty Ltd., source FN Arena