Citi picks Australia's Ardent Leisure as top small-cap leisure stock ahead of earnings

Coast Entertainment Holdings

27/01/2022 02:03

** Brokerage Citi picks theme park Dreamworld owner Ardent
Leisure  ALG.AX  as top stock in the small-cap leisure sector
ahead of the earnings season 
    ** Citi sees valuation upside in ALG, with earnings growth
supported by recent resumption of co's entertainment centre Main
Event and expectations of higher visitor numbers at Dreamworld
as border restrictions are eased 
    *** Citi forecasts H1 2022 EBITDA of $52 mln, above H1 2021
EBITDA of $8 mln
    ** H1 2022 theme park ticket sales expected to increase 20%
on pcp and positive sales momentum during Jan-Feb at Main Event
centres - Citi 
    ** Citi says its preference remains for businesses that have
a lower risk of impairment from COVID-19, which bodes well for
"buy" rated Ardent and peer Viva Leisure
    ** Three analysts rate ALG stock "buy" or higher; median PT
is A$1.80 – Refinitiv Eikon data
    ** AGL down 8.5% this year, as of last close

($1 = 1.3968 Australian dollars)

 (Reporting by Roushni Nair in Bengluru)
 ((Roushni.Nair@thomsonreuters.com;))