This week Ord Minnett have upgraded their target price on the back of the result. Their commentary: BET delivered an unambiguously strong result, beating OMLe at every line. Highlightsincluded a return to growth, continued GP margin improvement, and delivery of afurther ~$2.6m in annual cost savings – all of which saw BET deliver its strongest OCFresult as a listed company.
Taylor Collison have also joined the upgrade/rerate party:
Starting in FY23, Executive Chair and major shareholder Matt Davey mobilised aclear and definitive strategy to reinvigorate the BET business. This involved: -• Cleaning up the balance sheet• Improving BET’s ailing product• Undertaking a significant cost-out program• Driving revenue growthHaving rebuilt its reputation by executing on the first three tasks, we are lookingfor BET’s full pipeline and existing distribution deals to drive revenue and solidifythe position as the premier B2B racing solution provider globally. With a morehumble approach to its investors based on under-promising and over-delivering,we see BET’s long-term targets of 10% revenue growth and 70%+ Gross Marginas being imminently achievable based on 3Q25 levels. We maintain ourOutperform recommendation with BET trading on ~8.4x our FY26 forecasts onan EV/EBITDA basis, 50% below our updated price target of $0.21 per share.
If BET can sustain their growth (which all these new deals look to be working towards) and we know management are lazer focussed on managing costs now so they can get their LTIP, then the analysts will need to start making some major upgrades...
BET Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
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