The maiden interim result for Lottery Corp since the demerger from Tabcorp Holdings outperformed Morgans expectations, with a 14% for earnings (EBITDA).

The broker increases its target to $5.60 from $5.50 after lifting its FY23 and FY24 earnings estimates on higher revenue expectations and higher forecast opex efficiency.

The Add rating is maintained.

Sector: Consumer Services.

Target price is $5.60.Current Price is $5.13. Difference: $0.47 - (brackets indicate current price is over target). If TLC meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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