Gaming

Weekly update on recommendation, target price, and earnings forecast changes.

Weekly update on recommendation, target price, and earning forecast changes.

Tabcorp has de-merged the Echo Entertainment casino assets and brokers are struggling to see value in either of the stand-alone entities at current prices.

Tabcorp beat most market expectations with a strong March quarter revenue result, brokers generally continuing to see value leading into the upcoming de-merger vote.

Recent poor performances have left Cricket Australia in a sorry financial state. Taking a lead from the Brisbane Broncos, CA has decided to encourage fans to invest in their own team.

A cut to earnings guidance by Aristocrat Leisure has seen across the market cuts in earnings forecasts but there remains a division in broker views as to whether the stock is a value buy at present.

Analysts are not convinced two Tabcorps offer any more value than one, and any takeover potential will will be tempered by regulatory and cost hurdles.

The market is building in an assumed consumer recovery in 2011 on the strength of the Australian economy. But strategists argue such assumptions ignore a post-GFC change in the consumer mindset.

Australia’s lottery market is worth $3.6bn a year but only 4% of punters play online. Manaccom is well established to take advantage of inevitable growth.

Australian companies begin reporting FY10 results next week. FNArena provides some useful tips for the small investor – what to look out for, and what traps not to fall into.