Citi says Australia's EVT remains key pick in small caps

EVT

26/03/2023 19:57

** Citi says entertainment and leisure co EVT Ltd  EVT.AX 
remains a key pick in small caps 
    ** Says EVT's current share price implies investors are
practically getting the operating business for free when
factoring in the A$2 bln ($1.33 bln) property portfolio and
further upside in hotels
    ** Sees Apple's plans to spend $1 bln per year on theatrical
releases as a positive for EVT as it is another sign that
structural issues facing cinemas are not as significant as
previously thought
    ** Says it further demonstrates increased interest &
confidence in the cinema business model and the importance of
theatrical releases from a studio perspective
    ** Retains "buy" rating given EVT's core cinema and hotel
divisions continue to show positive recovery trends post
COVID-19 & increasing ability to positively influence earnings
independent of film slate and industry revenue, keeps PT A$17.11
    ** Four of six analysts rate the stock "buy" or higher, two
"hold" and none "sell" or lower; their median PT is A$17.11 –
Refinitiv data
    ** Stock has fallen 5.3% YTD, as of last close 

    


($1 = 1.5051 Australian dollars)

 (Reporting by Echha Jain in Bengaluru; Editing by Alexandra
Hudson)
 ((Echha.jain@thomsonreuters.com))