Citi upbeat on sales at Australian Ardent Leisure's U.S. unit

Coast Entertainment Holdings

16/09/2021 01:14

** Citi sees Australia's Ardent Leisure Group Ltd's  ALG.AX 
U.S.- based chain of family entertainment centres, Main Event's
sales growing through 1H22, despite slower growth in August due
to a rise in COVID-19 cases
    ** Says Main Event's slower growth in alcohol sales and U.S.
restaurant comp sales still strong enough to counter rising
costs
    ** Brokerage sees Main Event hiking its prices to offset
wage inflationary  pressure due to labour shortage in the sector
    ** Adds that positive cash flow a key for funding new centre
rollouts
    ** Expects RedBird Capital Partner's additional purchase of
26.8% stake (as an option exercisable between July 2022-2024) in
Main Event to fetch ALG $252 mln
    ** Citi maintains "buy" rating, PT at A$1.80
    ** Stock more than doubled so far this year, as of last
close 
    


 (Reporting by Dhriti Garg in Bengaluru)
 ((Dhriti.Garg@thomsonreuters.com))