Citi upbeat about EVT outlook on cinema and hotel prospects

EVT

22/02/2023 24:42

** Australian entertainment and leisure co EVT Ltd  EVT.AX 
might see improvement in core business on the back of positive
trends observed for both cinema spend per head and hotel rates
continuing into second half - Citi    
    ** Citi says Australia and NZ box office collections in
second half to date up 26% and 52%, respectively, from a year
ago 
    ** Says investors will see higher value in the properties
EVT is divesting under a programme, as recent divestment by co
has mostly been above valuations 
    ** Citi, however, cuts FY23 to FY25 net profit after tax
forecasts by 14% to 17%, reflecting higher-than-expected net
debt 
    ** "EVT's strong balance sheet, supported by its property
portfolio, positions the company well to pursue future growth
opportunities" - Citi
    ** Four out of six analysts rate the stock "buy" or higher
and two "hold"; median PT A$17.71 - Refinitiv Eikon data  
    ** Stock up 3.5% this year, as of last close, vs a 4.2%
increase in the benchmark S&P/ASX 200 index  .AXJO  
 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.Nair@thomsonreuters.com;))