Analyst Stephen Boland from Raymond James reiterated a Buy rating on Pollard Banknote and decreased the price target to C$33.00 from C$34.00.
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Stephen Boland has given his Buy rating due to a combination of factors including Pollard Banknote’s recent contract win with the Belgium lottery, which is expected to generate significant revenue over a 12-year period. This contract exemplifies Pollard’s ability to secure major deals and expand its presence in the iLottery market. Additionally, the company’s revenue exceeded expectations in the third quarter, driven by strong performance in its Lottery segment and increased income from NeoPollard.
Despite some pressure on margins due to startup costs and administrative expenses, Pollard is actively working on improving efficiencies and leveraging new systems to enhance profitability. The company’s position in an industry with high barriers to entry and strong customer relationships further supports its potential for future growth. These elements contribute to Boland’s confidence in Pollard’s ability to maintain its market position and achieve long-term success.
PBL’s price has also changed slightly for the past six months – from C$19.630 to C$20.000, which is a 1.88% increase.