Citi sees potential tailwinds for Australia's EVT Ltd in 1H FY23

EVT

12/02/2023 22:51

** Brokerage Citi says it picks Australia's EVT Ltd  EVT.AX 
as its top pick for the small-cap leisure sector as industry
data shows hotels have recovered strongly over 2022 and improved
medium- to long-term outlook for the cinema industry 
    ** Broker forecasts net profit after tax of A$37 million 
($25.59 million) for the half-year ended December due to
increased box office growth in Australia and higher hotel
revenues, as recovery is above pre-COVID levels 
    ** However, the brokerage says a delay in film releases in
the second half of the financial year could prove to be a risk
to its cinema sales forecast 
    ** Brokerage maintains "Buy" rating on stock, sets price
target of A$17.85 per share 
    ** Four of six analysts rate the stock "buy" or higher, two
"hold" and none "sell" or lower; their median PT is A$17.41 –
Refinitiv data
    ** Stock has risen 7.7% this year, as of last close
($1 = 1.4459 Australian dollars)
 (Reporting by Archishma Iyer in Bengaluru; Editing by Lisa
Shumaker)
 ((Archishma.Iyer@thomsonreuters.com;))