** Jefferies says gambling firm Tabcorp TAH.AX is in the early stages of a meaningful organic rebound amid market recovery

** Brokerage confident in improving wagering market, particularly in Racing, which appears to have bottomed

** Management's focus on resizing, cost control and leveraging assets to boost returns — brokerage

** Jefferies sees digital investment-focused strategy shift to enhance returns and profitability

** Despite balance sheet concerns, Jefferies anticipates TAH to deleverage to ~2x ND/EBITDA by FY25, driven by EBITDA uplift from Victorian license benefits

** Keeps "buy" rating at price target of A$0.77/shr

** Stock up ~8% YTD

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk))