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Investing.com - Jefferies downgraded The Lottery Corporation (ASX:TLC) from Buy to Hold while raising its price target slightly to AUD6.15 from AUD6.05.
The rating change came after TLC’s fiscal year 2025 results were reported as "relatively inline with expectations," according to Jefferies.
The firm noted positive market reaction to second-half 2025 digital penetration metrics and the Powerball price increase from AUD1.20 to AUD1.40.
Jefferies made minor upgrades to its forecasts for the company, with the new price target implying a price-to-earnings ratio of 32x and a 10% total shareholder return.
Despite projecting an 11% compound annual growth rate for FY2026/2027 earnings before interest and taxes, Jefferies attributed today’s stock price movement to earnings momentum, leading to the downgrade to Hold.
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