Macquarie Equities Research have upgraded Tatts Group to an outperform rating following proposed changes to wagering frameworks in QLD

Macquarie Equities Research have upgraded Tatts Group to an outperform rating following proposed changes to wagering frameworks in QLD. TTS has reached in-principle agreement with the QLD Government and Racing QLD to establish a new framework for the conduct of race and sports wagering. We anticipated a -$12.6m EBITDA impact from the new deal, instead the decision lifted earnings $12.3m, implying a $24.9m uplift to our forecast. Macquarie upgrades Tatts to Outperform with a price target increased to $3.50/sh due to favourable tax movements improving earnings.