We find it hard to like TAH at current levels, especially after their recent investor day flagged a more challenging trading year ahead due to the likes of cost-of-living pressures and regulatory scrutiny, the latter has already been discussed earlier. This is a classic case of a solid business at the wrong price and an expected yield of sub 3% over the next 12 months adds to the argument to prefer cash over TAH at current levels.
We like TAH but the risk/reward above $1.10 is not appealing.
TAH or “The Tab” as its better known has been a strong performer post-COVID but has drifted since its positive trading update out in February with a lack of further updates to show if the momentum had been maintained.
TAH shares have enjoyed an excellent 2-years and they remain resilient helped by a solid half-year result delivered last month i.e. Lotteries & Keno revenue surged 10.9% although COVID caused wagering and media revenue to fall a similar 9.8%. The net result through difficult times was the group revenue increased 2.2% to $2.9bn, however the quandary for us comes from the stocks strong performance over the past...
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