Q: Thoughts regarding PBL & thanks....
5i Research Answer:
We posted a new report on PBL yesterday. The initial pullback was very harsh and while the contract loss is not good but the 30% one day drop was over blown in our opinion. PBL is still the service provider to the Michigan Lottery till 2026, so it has more than enough time to replace the contract and there will be no near-term fundemental impact. Ticket repricing strategies have been a tailwind expected to continue to benefit till the end of 2024/early 2025. iLottery demand also continues to be strong. The stock is now cheap at 11.9x forward earnings and analyst outlook is quite positive for the next two years. We think these are attractive levels and as long contract losses do no not become a trend, it looks solid.