James Wheatcroft, an analyst from Jefferies, maintained the Buy rating on Lottomatica Group S.P.A.. The associated price target remains the same with €32.00.
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James Wheatcroft’s rating is based on Lottomatica Group S.P.A.’s strong financial performance and strategic positioning. The company’s EBITDA for the second quarter exceeded expectations by 2%, and its guidance remains consistent. Notably, Lottomatica has experienced significant growth in online bets and revenues, with a 24% increase in online bets and a 19% rise in underlying online revenues. Additionally, the company’s market share has expanded, particularly in the online segment, where it has grown by 1.4 percentage points to 30.5%.
Wheatcroft also highlights Lottomatica’s leading position in the Italian market, which is poised to benefit from a shift from offline to online gaming. The company’s profits are increasingly driven by its online operations, supporting double-digit growth. Furthermore, Lottomatica has a strong balance sheet, providing opportunities for mergers and acquisitions or share buybacks. The favorable regulatory environment in Italy, which benefits larger operators, and the company’s low valuation relative to its growth prospects, further support the Buy rating.
In another report released on July 16, Barclays also maintained a Buy rating on the stock with a €26.00 price target.