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Ed Young Reiterates Buy on Lottomatica, Maintains €30 Price Target After Solid Q1 and Improved Medium-Term Outlook

Ed Young Reiterates Buy on Lottomatica, Maintains €30 Price Target After Solid Q1 and Improved Medium-Term Outlook

Lottomatica Group S.P.A., the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Ed Young from Morgan Stanley maintained a Buy rating on the stock and has a €30.00 price target.

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Ed Young has given his Buy rating due to a combination of factors including a solid Q1 performance and a stronger medium‑term outlook. Lottomatica slightly exceeded expectations on adjusted EBITDA, driven mainly by the Online and Gaming Franchise segments, while management now anticipates delivering FY26 EBITDA at the upper end of its previously communicated guidance range.

He also sees attractive upside from structural drivers such as Italy’s upcoming licensing changes, market share gains from weaker operators, the continued recovery of PWO after its platform transition, and the boost from the World Cup to online activity. On his forecasts, the shares trade at what he views as undemanding valuation multiples with an appealing free cash flow yield, especially for a market‑leading operator facing easing competitive pressures rather than intensifying ones, supporting his unchanged €30 price target and Buy stance.

Young covers the Consumer Cyclical sector, focusing on stocks such as Entain plc, La Francaise des Jeux SA, and Lottomatica Group S.P.A.. According to TipRanks, Young has an average return of 5.3% and a 50.38% success rate on recommended stocks.

In another report released today, Jefferies also maintained a Buy rating on the stock with a €32.00 price target.

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