LTMC IM

Lottomatica Group S.p.A

Consumer, TMT


Presented:08/22/2024
Price:€11.48
Cap:$3.22B
Current Price:€11.36
Cap:$3.18B

Presented

Date08/22/2024
Price€11.48
Market Cap$3.22B
Ent ValueN/A
P/E Ratio58.57x
Book ValueN/A
Div Yield2.26%
Shares O/S251.63M
Ave Daily Vol247,622
Short IntN/A

Current

Price€11.36
Market Cap$3.18B
Lottomatica Group SpA operates as a holding company providing gaming services. It operates through the following segments: Online, Sports Franchise, and Gaming Franchise. The Online segment comprises iSport, iGaming, and Other online products. The Sport Franchise consists of a wide range of retail offerings including, but not limited to, sports betting, virtual betting, and horserace betting. The Gaming Franchise segment refers to the direct management of gaming halls and concessionary activities. The company was founded on October 15, 2019 and is headquartered in Rome, Italy.

Publicly traded companies mentioned herein: Apollo Global Management Inc (APO), Flutter Entertainment PLC (FLUT), Lottomatica Group Spa (LTMC IM), Playtech Plc (PTEC LN)

Highlights

The presenter is long shares of Lottomatica Group Spa (LTMC IM), which was an Italian IPO in May 2023. Lottomatica is a gaming company with a great management team that is currently trading at a large discount to the sector. The stock trades at 11x consensus forward earnings and is rapidly deleveraging. Apollo is the majority owner and as it sells down its stake, he expects the increased liquidity will allow the stock to rerate closer to ~15x earnings. This creates a price target of ~€15 per share, representing strong upside from the current €11.50 share price. 

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