In the wake of PointsBet’s reported 4.2% turnover share of the US market in the December quarter, Credit Suisse is assumimg further market share loss and increased marketing spend from the current number 5 in the marketplace.
The broker is concerned a further capital raising will be required before the year’s out, unless management can achieve its 10% market share goal or the company is taken over.
Target falls to $5.50 from $8.00, downgrade to Neutral from Outperform.
Sector: Consumer Services.
Target price is $5.50.Current Price is $5.07. Difference: $0.43 – (brackets indicate current price is over target). If PBH meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
