BlueBet Holdings' trading update revealed "strong" margins during the Spring Racing Carnival, according to Morgans.

The company noted at the AGM a net win margin of 15.8% during racing days and November's net win margin of 12.8%. Morgans highlights 2Q25 margin year-to-date at 11.5%.

The broker expects 1H25 underlying earnings of $0.5m and a net loss of -$2.2m for FY25. Earnings forecasts for FY25-FY26 rise by 3.5%.

The target price lifts to 36c from 35c. The Add rating is retained.

Sector: Consumer Services.

Target price is $0.36.Current Price is $0.30. Difference: $0.06 - (brackets indicate current price is over target). If BBT meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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