The company's trading update significantly exceeded Morgans' expectations. The broker believes the company is high-quality and upgrades forecasts substantially. Transaction value in FY19 is expected to grow 44%.
The broker considers Jumbo’s result to be solid in a weaker traditional lottery jackpot environment. Earnings forecasts have been raised by 6-8% over FY18-20 on the assumption of jackpot normalisation, increasing high margin charity lottery business and leveraging fixed costs.