Pollard Banknote Ltd PBKOF

Raymond James

[retiredcf]

Raymond James’ Stephen Boland hiked his Street-high Pollard Banknote Ltd.  target to $44 from $40.50 with an “outperform” rating. The average is $34.75.

“Pollard Banknote (PBL-TSX) reported their 2Q24 results on August 13. PBL reported revenue of $137.8 million vs RJL at $134.4 million. Adjusted EBITDA was $32.3 million vs and RJL $26.0 million,” he said. “The gross margin materially improved, which came as a surprise. Management’s outlook is more positive. Instant ticket volumes are expected to rise for the next two quarters. With the majority of contracts repriced, the margin should reflect this going forward. The outlook for the other segments — iLottery, eGaming and Charitable Gaming — remains positive. Acquisitions continue to be evaluated, with a small deal announced recently. The stock has suffered since the announcement that their JV partner has won the Michigan iLottery contract on its own, beginning in 2026. We would remind investors that not every contract contains the same requirements (having technology in place in the U.S.) and that most iLottery contracts are long-tailed. Some extend beyond 2030. This was a positive quarter, which was eagerly anticipated. We maintain our Outperform rating.”

[FormerHedgie]

Thanks for sharing.  Can you share the front page where they usually provide the basis for their valuation of $44.  The pesismist in me thinks this is a bit of potential jocking for syndicate ranking if a larger acquisition is announced where they need to do an equity financing.  Sorry, jaded from years on Bay St.  LOL