ZEAL Network SE Shows Strong Q3 Performance Amidst Product Shifts

ZEAL Network SE has been given a "BUY" recommendation by NuWays AG, with a 12-month target price set at EUR 65.00. The company's flagship product, the Eurojackpot (EJ), demonstrated robust growth in Q3, with spending increasing by 28% year-on-year and 15% quarter-on-quarter, reaching €1.35 billion. This surge is attributed to strong jackpot runs and consecutive peak jackpots towards the end of Q3.

Conversely, the German Lotto 6/49 continues to struggle, with a 5% year-on-year decline in spending to €812 million. The lack of peak jackpots since Q3 2023 has reduced its appeal. Despite this, ZEAL's focus on the EJ product has cushioned the overall impact, with Q3 sales expected to reach €55 million, reflecting a 24% year-on-year increase.

Looking ahead, ZEAL's growth will largely depend on jackpot developments and past customer intake. The company maintains a positive outlook, reaffirming its guidance and BUY recommendation.