While strong jackpot sequencing and cost guidance de-risks FY24 results, in Morgan Stanley's opinion, the FY25 cost outlook remains a key area of uncertainty post the de-merger from Tabcorp holdings ((TAH)).

The broker's Equal-weight rating is maintained on flat earnings growth in FY25, but there is potential for capital management upside. The $5.35 target is unchanged. Industry View: In-line.

Sector: Consumer Services.

Target price is $5.35.Current Price is $4.92. Difference: $0.43 - (brackets indicate current price is over target). If TLC meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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