A: Thanks for the question.

The performance of Tabcorp has really surprised me this year. I included it in our Income Portfolio at the start of the year on the basis it provided a reasonable yield and relatively low risk. It was $4.84 at the time. As the Tatts/Tabcorp merger meandered along, it got smashed, falling to under $4.00. When the merger was approved (which was always going to happen), it has rallied strongly to around $5.17.

In terms of the brokers, they see Tabcorp  as pretty fully priced. According to FN Arena, the current target broker price is $4.84 (range $4.10 to $5.25).

The Tabcorp/Tatts merger has been thoroughly planned, and while the lotteries business is pretty sound, the wagering business faces ongoing competition from the online bookmakers. Given the rally in price, I would be tempted to lock in some profits.