Aussie Ardent Leisure's earnings recovery relies on local patrons - Jefferies

Coast Entertainment Holdings

04/01/2023 03:37

** Local and interstate travellers will continue to be the
key driver of leisure and entertainment group Ardent Leisure
Group Ltd's  ALG.AX  earnings recovery - say analysts at
Jefferies 
    ** Says China's relaxation of overseas travel restrictions
on its citizens will have minimal impact on ALG
    ** Sees A$16 mln ($10.84 mln) normalised EBITDA for fiscal
2023 for company's theme parks 
    ** "Our positive view on Ardent Leisure's fundamentals is
moderated by the wider macroeconomic factors that influence its
theme park operations" - Jefferies  
    ** Says the impact of COVID-19 on Ardent's theme parks
operations is of 'greater concern' 
    ** Two of three analysts rate the stock "buy" or higher, one
"sell;" their median PT is A$0.75 – Refinitiv data
    ** ALG shares are down as much as 2.5% at A$0.585, their
lowest since Dec 6, 2022 
    ** Stock has fallen 0.8% this year, as of last close
($1 = 1.4760 Australian dollars)
 (Reporting by Poonam Behura in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com;))