Morgans notes a top line beat in Jumbo Interactive's first half didn't carry through to underlying metrics given high operating expenditure investment, resulting in a -5% underlying earnings miss and -7% profit miss although up 16.9% and 18.2% year-on-year respectively. 

Acceleration of the customer acquisition strategy was one driver of increased expenditure, with marketing costs rising 80% year-on-year, but the addition of 198,000 new players should begin to benefit the company from the second half.

The Add rating is retained and the target price decreases to $20.50 from $20.75.

Sector: Consumer Services.

Target price is $20.50.Current Price is $17.04. Difference: $3.46 - (brackets indicate current price is over target). If JIN meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2022 Acquisdata Pty Ltd., source FN Arena