Citi upbeat on Australia's Ardent Leisure after acquisitions in U.S.

Coast Entertainment Holdings

04/03/2022 24:58

** Citi lifts its earnings view on Ardent Leisure  ALG.AX 
after the theme park operator buys three U.S. family
entertainment centres
    ** ALG said on Thursday https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02495042-2A1360911?access_token=83ff96335c2d45a094df02a206a39ff4
 it had bought entertainment centres in Colorado via its top
revenue generator Main Event, marking its entry to one of its
target trade areas
    ** "See the acquisition of three standalone family
entertainment centres as positive for Ardent" - Citi
    ** Acquisition appears low risk given the centres are
already trading profitably, target market seems favourable, and
prices appear broadly in line - brokerage
    ** Hikes FY22 core net profit view by 5.2%, now expects a
loss of A$30.9 mln ($22.57 mln), compared with a loss of A$79.5
mln recorded last year
    ** Citi cuts price target to A$1.96 from A$2.0 citing higher
net debt; retains "buy" rating
    ** ALG up 14.8% this year, as of last close, vs a 4.3%
decline in the ASX All Ordinaries index  .AORD  

($1 = 1.3689 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))