Citi hikes PT on Event Hospitality and Entertainment on upbeat Q2 outlook

EVT

25/10/2021 02:44

** Shares of the hospitality and entertainment provider
 EVT.AX  rise as much as 2.2% to A$16.340 — a near one-month
high
    ** Citi raises price target to A$18.65 from A$17.70, stays
"buy" rated on EVT
    ** Brokerage says Q2 will be better for EVT after a
challenging Q1 due to lockdowns in Australia and lack of
government subsidies vs last year
    ** Earnings momentum to improve in Dec. quarter on pent-up
demand for leisure activities as Australia and New Zealand
reopen, and as consumers take more domestic holidays due to
international border closure - Citi
    ** New property divestments may be driving a shift in
sentiment for EVT, says Citi, adding that the value of its
operating businesses could imply a share price ~A$26.77, 67%
higher than the current trading price
    ** Sees upside to EBITDA forecast for Germany ops if 30
million euros ($34.91 million) in subsidy is received; raises
FY22 EBIT guidance for co on better than expected performance of
Event Germany
    ** Stock up 68.5% this year, as of last close

($1 = 0.8593 euros)

 (Reporting by Anushka Trivedi in Bengaluru)
 ((Anushka.Trivedi@thomsonreuters.com; +918061823241;))