ZEAL Network SE: Steady Performance and Growth Prospects

NuWays AG reiterated its "BUY" recommendation for ZEAL Network SE, setting a target price of EUR 64.00. The research highlighted strong Q2 lottery spending trends, particularly in the Eurojackpot, where €1.17bn was spent. Despite a slight year-over-year decline, spending remained robust, signaling a shift in demand from Lotto 6aus49 to Eurojackpot.

Lotto 6aus49 faced challenges with low average jackpot sizes and decreased spending, hitting the lowest levels since 2018. However, ZEAL Network SE, holding a 44% market share in the online lottery market, experienced disproportionate sales growth. The acquisition of 247,000 new users in Q1 is propelling this growth.

Q2 is expected to yield €54m in sales, a 33% year-over-year increase, driven by higher marketing expenses and rising sales from games. These factors position ZEAL for potential guidance upgrades, maintaining the "BUY" recommendation.