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Highlights:

  • Jefferies remains bullish with a “BUY” rating and a price target of AUD 0.77, reflecting 11.59% upside.

  • TAH shares have surged 28% in a month without any new announcements.

  • 1H25 results exceeded expectations, with double-digit revenue and profit growth, aided by the new Victorian licence and cost-saving measures.

Shares of Tabcorp Holdings Ltd (ASX:TAH) closed 5.80% higher at AUD 0.73 on 3 June 2025, extending a rally that has seen the stock climb nearly 28% in the past month and 37% over the last six months. The recent share price momentum comes despite no new price-sensitive announcements from the company during this period.

Jefferies Reiterates “BUY” Rating

Global investment bank Jefferies continues to hold a “BUY” rating on Tabcorp, with analyst setting a price target of AUD 0.77, implying an upside of 11.59% from the current trading levels. 

Financial Results in 1H25

In its half-year FY25 (1H25) results, Tabcorp delivered following results:

  • Group Revenue rose to $1,331.3 million, marking a 10.1% increase compared to 1H24.

  • Group EBITDA grew by 12.0% to $190.2 million.

  • Net Profit After Tax (before significant items) increased by 25.6% to $22.1 million.

  • An interim dividend of 1.0 cents per share (unfranked) was declared for 1H25.

The company’s uplift in EBITDA included a $36.4 million contribution from the newly reformed Victorian Wagering and Betting Licence, which became operational during 1H25. 

Cost Efficiency Driving Future Optimism

Tabcorp’s focus on operational efficiency has also been a contributing factor to its improving margins. The company reported a 1.8% improvement in underlying operating expenses (prior to incentive accruals), even amid ongoing inflationary pressures. Management has increased its FY25 opex savings target to $30 million, up from the previously announced $20 million.