Citi downgrades PT on Australia's EVT on lower earnings view

EVT

28/08/2023 19:43

** Citi lowers price target on Australia's EVT Ltd  EVT.AX ,
given lower earnings expectations in fiscal 2024-25
    ** Cuts PT to A$13.00 from A$13.30; maintains "neutral"
rating 
    ** The leisure and entertainment co reported FY profit
attributable of A$106.5 mln ($68.39 mln) vs A$53.3 mln last year
    ** Co expects FY24 box office segment to perform better than
FY23 
    ** We remain cautious in the near term given the company's
expectations of a stronger box office in FY24 assumes no further
delays to the current film slate, which is dependent on the
outcome of the writer's strikes - Citi
    ** Brokerage forecasts first half 2024 EBITDA growth of 9%
in the Hotels and Resorts business, largely driven by reopening
of Rydges Melbourne in May 2023, improving travel demand, among
others 
    ** However, trims FY24 and FY25 NPAT estimates by 17% and
14%, respectively, driven by lower earnings estimates in ANZ
Cinemas, Hotels, and Thredbo
    ** 2 of 6 analysts rate the stock "buy" and 4 "hold"; their
median PT is A$13.50 – Refinitiv data
    ** Stock up 5.5% this year, as of last close


($1 = 1.5571 Australian dollars)

 (Reporting by Poonam Behura in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com))