Tabcorp shares soar as Brett Chenoweth appointed as new chair
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The news: Tabcorp was the best performing company across the ASX 200 today after the gambling company announced the appointment of its new chair following market close on Thursday.
The numbers: Tabcorp shares rose 9.3% to 47 cents by 2:10pm AEST, having lost over 50% in the last 12 months.
Following the announcement, Jarden analysts retained their 65 cent price target on the stock.
The context: Former APN News and Media chief Chenoweth will succeed Tabcorp's current chair Bruce Akhurst, who will retire at the company's 2024 annual general meeting after joining the board in 2017.
Tabcorp also announced that Justin Milne, who joined the company as a non-executive director in 2011, will retire from the board.
Jarden analysts, who retained their 'overweight' rating on Tabcorp noted that Akhurst and Milne are the longest serving Tabcorp directors. Finalising the board and C-suite teams after long-standing CEO and CFO vacancies "should help create much needed clarity", they said.
What they said: "Short term, we look for [management] to prioritise business execution, including assessing its leadership capabilities, identify ways to right-size its cost base, and culturally move to a more entrepreneurial, agile, business model," the analysts said.
"We think applying greater financial discipline and [profit and loss] accountability, whilst proactively partnering with other stakeholders (including government, principal racing authorities and major sporting bodies) is likely to prove critical in turning the business around," they said.
The source: ASX announcement
