Australia's casinos: Citi reckons H1 focus on trading, M&A, regulatory risks

Chineseworldnet.Com

08/02/2021 24:44

** Citi expects investors will be focused on post-reopening
trading updates, regulatory risks and M&A developments at H1
results of Crown Resorts  CWN.AX  and Star Entertainment Group
 SGR.AX  
    ** Brokerage expects New South Wales Independent Liquor and
Gaming Authority to publish its report on CWN's license before
results on Feb 18
    ** Says not a lot of downside risk priced into CWN at
current levels
    ** Considers CWN a M&A target for a private equity firm, or
even shareholder Blackstone  BX.N ; does not see merit in
CWN-SGR merger
    ** Without any M&A activity, Citi prefers SGR over CWN, but
holds a 'neutral' rating on both 
    ** Shares of CWN rise as much as 1.4% to A$10.12 in their
second session in black & shares of SGR slip as much as 0.9% to
A$3.805  
    ** Says a lack of restrictions and strong consumer spending
are expected to support Crown Perth and Star Queensland,
primarily driven by locals 
    ** SGR up 4.4% this year and CWN gained 3.6% this year, as
of last close


 (Reporting by Riya Sharma in Bengaluru)
 ((Riya.Sharma@thomsonreuters.com;))