On the basis that in general Victorian gambling revenues were down 5 percent in the 4 months to April and the effects of the stimulus have worn off RBS Morgans has downgraded Tatts Group earnings on 2 June 2010.
RBS Morgans now expect a dividend of 18.1 cents for f/y 2010 down from 21 cents in the previous financial year. Target price is down to $2.43 from $2.44. The recommendation is hold.
RBS Morgans reported net profit is expected to be $255.9 million in f/y 2010 down from $277.4 million in the previous financial year.
RBS Morgans see better value in CWN and TAH.
Always seek independent financial advice before acting on buying or selling securities.
TTS Price at posting:
$2.33 Sentiment: Sell Disclosure: Not Held
