Jefferies analyst James Wheatcroft maintained a Buy rating on Lottomatica Group S.P.A. today and set a price target of €32.00.
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James Wheatcroft has given his Buy rating due to a combination of factors that highlight Lottomatica Group S.P.A.’s strong market position and growth potential. The company has adjusted its full-year guidance, showing a slight increase in EBITDA compared to previous expectations, despite revenues being marginally below consensus. This adjustment reflects the completion of PWO migration, which, while impacting revenues, has positively influenced EBITDA through accelerated synergies.
Wheatcroft also points to Lottomatica’s leading position in the Italian market, which is expected to benefit from the shift from offline to online operations, driving double-digit growth. The company’s balance sheet offers opportunities for mergers, acquisitions, and share buybacks, further supported by favorable regulatory conditions in Italy that benefit larger operators. Additionally, Lottomatica’s low valuation relative to its growth prospects and the potential for market share gains due to regulatory changes are significant catalysts for the Buy rating.
Wheatcroft covers the Consumer Cyclical sector, focusing on stocks such as Entain plc, The Gym, and Flutter Entertainment PLC. According to TipRanks, Wheatcroft has an average return of 6.5% and a 46.56% success rate on recommended stocks.
In another report released on October 22, Barclays also maintained a Buy rating on the stock with a €26.00 price target.