Citi sees short-term risks to Ardent Leisure's Dreamworld from lockdowns

Coast Entertainment Holdings

30/06/2021 24:20

** Citi remains positive on Australian theme park operator
Ardent Leisure Ltd  ALG.AX , but says lockdowns in Queensland
and other states means more short-term headwinds for ALG-owned
Dreamworld theme park, Queensland 
    ** Citi forecasts EBITDA loss of A$2.5 mln ($1.88 mln) in
2H21 for Dreamworld due to 3-day park closure vs loss of A$6 mln
yr earlier
    ** "The current closure/lockdowns are likely to put pressure
on Dreamworld's cash burn" - Citi
    ** Sees encouraging outlook in medium term, helped by
opening of new Steel Taipan rollercoaster before summer 2021
    ** Brokerage maintains "buy" rating and PT of A$1.30
    ** Stock up 42.8% so far this year, as of last close, vs
10.8% increase in the benchmark index  .AXJO  


($1 = 1.3310 Australian dollars)

 (Reporting by Harish Sridharan in Bengaluru)
 ((harish.sridharan@thomsonreuters.com;))