** Analysts at Macquarie cut price target on Australia's Lottery Corp TLC.AX to A$5.40 from A$5.50, maintain "neutral" rating

** TLC falls 1.4% to A$5.39; YTD, stock up 8.8%

** Macquarie forecasts a 4% rise in FY26 Australian lotteries volume growth vs 9% growth previously expected

** Expects digital penetration to drop in the first half, impacted by changing composition of sales channels over previous half

** Lowers EPS guidance for co by 9%, 3% and 2% for FY26, `FY27 and FY28, respectively

** Nine out of 14 analysts covering the stock rate it "hold", three "buy" and two "sell"; median price target A$5.75 - data compiled by LSEG

(Reporting by Keshav Singh Chundawat in Bengaluru)

((Keshav.singhchundawat@thomsonreuters.com))