Broker tips: Playtech, Tharisa
By Iain Gilbert
Date: Monday 27 Mar 2023
(Sharecast News) - Analysts at Deutsche Bank bumped up their target price on gaming and sports betting software firm Playtech from 608.0p to 615.0p on Monday, citing the group's "resilient performance".
Deutsche Bank said Playtech had reported "strong" full-year results that were "modestly ahead" of consensus thanks to a year of "considerable achievement".
The German bank noted that group revenues and profits were "materially ahead of expectations" at the start of last year, despite downward pressure from rising regulatory costs and disruption from protracted bid discussions.
"Snai proved its franchise model for retail to be resilient, while Italian online delivered growth, despite the reopening of retail betting outlets for the full year 2022," said Deutsche. "Retail and B2B delivered double-digit growth."
DB also reiterated its 'buy' rating on the stock.
Over at Berenberg, analysts reiterated their 'buy' rating and 270.0p target price on resource group Tharisa on Monday after the company struck a fresh commodity offtake-based financing agreement.
Berenberg noted that terms of Tharisa's $130.0m debt facility with Société Générale and Absa Bank, split between a $80.0m term loan and a $50.0m revolving facility, had not been disclosed, other than that they have a 42-month tenure.
However, it also said the debt facility added further financial flexibility for Tharisa, and expects the facilities to form part of the funding for its Karo PGM project in Zimbabwe, and minimise risk of equity issuance.
"We view the debt facility as a small positive for the shares," said the German bank. "We value Tharisa at 266.0p per share on a net asset value basis (0.36x), while, on an enterprise value/EBITDA basis, the shares are trading at 3.0x full-year 2023E EBITDA, versus a trailing three-year average of 3.5x. Using a blend of 1x NAV and 4.0x 12-month forward EBITDA, we reach a price target of 270.0p."
Reporting by Iain Gilbert at Sharecast.com
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