ZEAL Network’s Strong Financial Performance and Growth Potential Earns Buy Rating

Henrik Paganetty, an analyst from Jefferies, maintained the Buy rating on ZEAL Network (0QJQ – Research Report). The associated price target remains the same with €58.00.

Henrik Paganetty has given his Buy rating due to a combination of factors that highlight ZEAL Network’s strong financial performance and growth potential. The company reported impressive figures for FY 2024, with a significant increase in customer acquisition and lottery billings, which rose by 28% to €1.1 billion. This growth was supported by enhanced customer activity, intensified marketing efforts, and a favorable jackpot year.
Moreover, ZEAL’s revenue surged by 62% to €188 million, surpassing consensus expectations by 4%. The EBITDA also saw an 88% increase, reaching €61.9 million, which is an 8% beat over consensus estimates. These robust results are attributed to higher online penetration, market share expansion, and strategic changes in ticket pricing and product mix. Looking ahead, ZEAL’s guidance for 2025 suggests continued revenue growth and a strong EBITDA outlook, reinforcing the positive sentiment around the stock.