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On Thursday, Deutsche Bank (ETR:DBKGn) analyst Simon Davies increased the price target on Lottomatica Group Spa (LTMC:IM) shares to EUR22.44, up from the previous EUR21.44, while reiterating a Buy rating. The adjustment follows Lottomatica’s impressive first-quarter performance, which saw the company expand its presence in the competitive Italian iGaming and eSports market.
The company’s strong Q1 results were attributed to a series of favorable sporting outcomes that had previously eluded them throughout much of 2024. This stroke of luck led to an additional €32.5 million in online revenues and another €24.8 million from sports franchise revenues. Notably, the retail sports segment of Lottomatica experienced a significant turnaround, with Ebitda margins increasing nearly 10% year-over-year.
Lottomatica’s revenue surged by 33% to €586 million, slightly surpassing the consensus estimate of €582 million. Ebitda also saw a substantial increase, jumping 47% to €220.5 million, which was modestly above the consensus projection of €218 million. The analyst highlighted that the growth in Ebitda was largely due to the more favorable sports results that Lottomatica encountered.
The company’s financial success and market share gains in the Italian market have clearly impressed Deutsche Bank’s analysts, prompting the updated price target. This move reflects confidence in Lottomatica’s continued growth trajectory and its ability to capitalize on favorable market conditions.
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