A post-covid surge in cash wagering was mainly responsible for Tabcorp Holdings 24% lift in 1H earnings (EBITDA), according to Morgan. The result was in line with consensus and the broker retains its $1.20 target and Add rating.

As part of its key TAB25 targets for FY25, management outlined an ambition to increase share of the digital market to 30%, implying to the analyst double-digit annual growth in the digital business. Tabcorp maintained its digital market share at 25.1% in the 1H.

The broker would anticipate upside for shareholders should this target be realised, in conjunction with improving opex efficiency (the second major component of the TAB25 targets).

Sector: Consumer Services.

Target price is $1.20.Current Price is $1.04. Difference: $0.16 - (brackets indicate current price is over target). If TAH meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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