Lottery's (ASX:TLC) investor day strategy centered on digital growth, cost discipline, and taking the company forward as a "digitally led entertainment platform," Jefferies said in a note on Wednesday.
The company is targeting younger demographics and incremental revenue sources, particularly by strengthening digital engagement and scaling product penetration.
The investment firm said Lottery appears to be getting more creative with digital initiatives in retail venues, including app redemptions, QR code interactions, and enhanced online retailer sign-ups and auto-renewals.
Jefferies said that meaningful upside would require new revenue streams, which remain uncertain and upgraded its EPS estimates by 2% and 1% for fiscal 2026 and 2027, respectively.
The brokerage maintained a hold rating and raised its price target to AU$5.70 from AU$5.60.