As part of a preview of FY22 results for five gaming stocks under coverage that report in August, Morgans expects the best earnings growth from those primarily exposed to lotteries. These iare represented by Jumbo Interactive and Lottery Corp.
For BlueBet Holdings, the broker forecasts an earnings (EBITDA) loss of -$1.2m in FY22 with an underlying net loss of -$1.0m. Upside is expected from increased share of the Australian online wagering market, and penetration of the US sports betting market.
The Add rating is unchanged and the target falls to $1.40 from $1.60.
Target price is $1.40.Current Price is $0.56. Difference: $0.84 – (brackets indicate current price is over target). If BBT meets the Morgans target it will return approximately 60% (excluding dividends, fees and charges – negative figures indicate an expected loss).
