Following the announcement by the NSW Treasurer that agreement has been reached with the Liberal Party to sell the NSW Lotteries Deutsche Bank rates Tatts Group a buy with a price target of $2.80.
Tatts Group (TTS) and Tabcorp and a group of newsagents are the main contenders for the NSW lotteries which is a very highly profitable business. It previously supported the operations of all the public hospitals in NSW. Now the revenue from the NSW Lotteries goes into consolidated revenue.
Tatts Group (TTS) is an excellent trading stock in my view.Tabcorp is a good company but the shares are priced near fair value at the moment.
