UBS initiates coverage on Jumbo Interactive with a Neutral rating and a target price of $14.10.
UBS notes Jumbo Interactive is Australia’s only pure-play exposure to online lottery ticket sales. Furthermore, the company is exposed to the conversion of lottery tickets to online which is expected to underpin growth for some time.
With Tabcorp Holdings ((TAH)) continuing to gain share online, the broker prefers to be cautious and would like the trend to stabilise before becoming more constructive.
Sector: Consumer Services.
Target price is $14.10.Current Price is $13.36. Difference: $0.74 – (brackets indicate current price is over target). If JIN meets the UBS target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
