Jefferies analyst James Wheatcroft maintained a Buy rating on Lottomatica Group S.P.A. (LTMC – Research Report) today and set a price target of €23.00.
James Wheatcroft has given his Buy rating due to a combination of factors that highlight Lottomatica Group S.P.A.’s strong financial performance and strategic positioning. The company’s first-quarter EBITDA surpassed consensus expectations by approximately 2%, and the guidance for fiscal year 2025 has been reaffirmed, suggesting robust future growth prospects. Additionally, Lottomatica has announced a significant €500 million share buyback program, which is expected to enhance shareholder value over the next 18 months.
Moreover, the company is benefiting from increased synergies, improved market share, and favorable market conditions, particularly in the online segment. Lottomatica holds a leading position in the lucrative Italian market, which is poised to gain from the shift from offline to online gaming. The company’s financial metrics, such as a low valuation relative to peers and a solid free cash flow yield, further support the Buy rating, as they indicate potential for re-rating and growth driven by market diversification and regulatory advantages.
In another report released on April 24, J.P. Morgan also maintained a Buy rating on the stock with a €23.50 price target.