Tabcorp Holdings Ltd (ASX: TAH) shares have flown higher over the past week, pushing the wagering and gaming products provider's value to a multi-year high.
At the time of writing, Tabcorp shares are flat at $1.10 per share. But the latest trading price still represents a 16% increase over the past week and a 12% increase over last month.
Tabcorp shares have also increased an impressive 107% over the past year.
There hasn't been any price-sensitive news out of the business since it posted its half-year results in February.
So the question is, why is everyone suddenly buying Tabcorp shares this week?
Image source: Getty Images
Here's what is driving Tabcorp shares higher
It looks like investors are finally buying into Tabcorp's recovery after a two-year period of weakness from late 2023 to late 2025.
The company has managed to stage a turnaround, which has created stronger financial results this year and renewed market confidence. Now it appears that the changes have finally gained some traction.
Tabcorp has undergone cost-cutting measures, a restructure, and also reshuffled its leadership in an effort to improve its revenue and earnings.
In its first-half results, the company revealed that group revenue was a modest 1% higher, EBITDA before significant items was up 14.3%, and statutory net profit before significant items had surged 61.5%.
The figures came in way ahead of market expectations (around 34% above consensus estimates), and a sudden rise in investor interest saw the share price jump nearly 24% in just one day.
Elsewhere, renewed confidence that the war between the US and Iran will soon come to a peace agreement has reinvigorated shares across most ASX markets.
What's next from the wagering stock? Is there more upside ahead?
According to analyst estimates, we can expect to see much more upside from Tabcorp over the next 12 months as its earnings continue to build and investor confidence gains even more momentum.
TradingView data shows that eight out of 12 analysts have a buy or strong buy rating on Tabcorp shares. Another three have a hold rating on the stock.
The average target price of $1.135 implies another 3% upside at the time of writing. Whereas the maximum $1.29 target price suggests we could see Tabcorp shares climb another 18%.
Ord Minnett was the latest broker to update its rating on Tabcorp shares. In mid March the broker trimmed its rating to accumulate, from buy, and raised its price target to $1.17 "on valuation grounds".
Morgans also recently maintained its accumulate rating and increased its target price to $1.20.
