Street Calls of the Week
Investing.com - Stifel has raised its price target on Brightstar Lottery (NYSE:BRSL) to $20.00 from $18.00 while maintaining a Buy rating on the stock. The $3.2 billion market cap company currently trades within a broader analyst target range of $12.52 to $28. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.
The firm cited multiple growth vectors that support a forthcoming inflection in the company’s organic growth algorithm from low-single-digit to mid-single-digit percentages.
Stifel noted that recent Powerball and Mega Millions jackpots support potential upside for the third quarter and help reduce risk around North American core same-store sales re-acceleration and initial fiscal year 2026 guidance.
While uncertainty remains elevated regarding Brightstar’s Italian digital strategy, Stifel indicated that investor expectations are already low in this area.
The firm adjusted its financial model based on Powerball upside and Lotto fee amortization, while highlighting the company’s well-documented macro resilience and potential for a durable and growing dividend yield exceeding 5%.
In other recent news, Brightstar Lottery PLC reported its second-quarter 2025 earnings, which showed a mixed performance. The company’s earnings per share (EPS) came in at $0.12, falling short of the anticipated $0.15, which represents a 20% negative surprise. However, Brightstar Lottery’s revenue exceeded expectations, reaching $631 million, a 1.54% increase over forecasts. In another development, the company completed the repurchase of 13,573,035 ordinary shares under its accelerated share repurchase (ASR) program, with an upfront payment of $250 million. These shares are now held in treasury. Additionally, Brightstar Lottery announced its participation in the 12th European Lotteries Congress, where it will showcase its lottery solutions portfolio, including the LotteryLink product. This event will take place in Bern, Switzerland. These recent developments reflect the company’s ongoing strategic activities and market engagements.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.