Shares in ZEAL Network SE (ETR: TIMA) have come under pressure in recent weeks, but analysts at mwb Research believe investors should take notice and action.
In a note from analyst Abed Jarad, mwb Research argues that the selloff presents a buying opportunity rather than a cause for alarm, reiterating a BUY rating with an unchanged price target of EUR 72.00, implying upside of around 62% from the current price of EUR 44.50.
According to mwb Research, around 3% of the decline can be attributed to the recent ex-dividend adjustment following a EUR 1.40 per share dividend, with the remaining weakness lacking “a clear company-specific trigger.”
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The firm believes the broader pressure “may partly reflect sector concerns around the rise of prediction-market platforms such as Polymarket, which have weighed on sentiment across parts of the online gaming and wagering ecosystem.”
However, mwb Research sees ZEAL as “structurally differentiated, given its focus on regulated lottery products” — a distinction it views as critical.
Adding to the bullish case, the jackpot environment has improved sharply, with both EUROjackpot and Lotto 6aus49 simultaneously hitting their caps. mwb Research notes this should drive “a strong uplift in customer engagement, reactivations and billings,” while further rollovers “would further de-risk ZEAL’s FY26 guidance.”
With estimates and investment thesis unchanged, mwb Research concludes the pullback “improves the risk/reward profile,” making the current setup “an attractive entry point.”
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