Lottomatica’s Strong Q1 Performance and Strategic Positioning Justify Buy Rating

Analyst Ed Young of Morgan Stanley maintained a Buy rating on Lottomatica Group S.P.A. (LTMC – Research Report), with a price target of €24.50.

Ed Young has given his Buy rating due to a combination of factors including Lottomatica’s strong first-quarter performance, which exceeded expectations and demonstrated operational momentum. This positive outcome has reinforced confidence in the company’s fiscal year 2025 guidance. Although headline revenue and EBITDA forecasts remain unchanged, the full impact of recent refinancing and a significant share buyback have led to an earnings per share upgrade for the upcoming years.
Additionally, Lottomatica’s strategic advantages, such as its differentiated approach, scale, and robust technology, position it well to capture a larger share of Europe’s gambling market. The anticipated acceleration in growth due to the online licensing process, coupled with the stock’s attractive valuation, further supports the Buy rating. Despite a notable increase in share price, the stock remains competitively priced compared to its peers, making it an appealing investment opportunity.

According to TipRanks, Young is ranked #1487 out of 9472 analysts.

In another report released today, Berenberg Bank also maintained a Buy rating on the stock with a €23.50 price target.