Jumbo Interactive Ltd – Sell or hold?

I have shares in Jumbo (JIN), as they have fallen significantly should I sell while I have still a profit? I bought them when they were $2.40.

A: That’s a big profit – almost 10 times!

 

I like Jumbo Interactive (as does the market), but it is trading on a pretty heady multiple (34.7 times forecast FY20 earnings and 27.0 times forecast FY21 earnings). This means that any minor hiccup will get severely punished.

 

Two of the major brokers cover the stock – both have buys, but Morgans target is $19.17 (below the current price of $20.60), Morgan Stanley’s target is $24.00.

 

If you are really worried, I would bank some of my investment.


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