Citi upgrades Australia's Event Hospitality on strong recovery in hotels

EVT

20/09/2022 22:57

** Citi raises Australian hospitality and entertainment
provider Event Hospitality and Entertainment Ltd  EVT.AX  to
"buy" from "neutral", retains price target of A$17.17
    ** Says hotels continue to outperform expectations with
Australian revenue per available room in July and August being
20% and 6% above pre-COVID levels, respectively
    ** Headwinds from increased subscription/premium video on
demand appearing to be less significant than previously thought
    ** Says household spend on leisure activities could prove
relatively more 'sticky' compared to goods in a downturn as
customers may prioritise activities restricted during pandemic
    ** Says EVT's valuation excluding property unit is
undemanding after recent share fall; EVT down ~17% since Aug. 22
    ** Adds that potential poor performance of cinema earnings
in 1H23 due to a clear film slate is now priced in
    ** Three of six analysts rate the stock "buy" or higher, and
three "hold"; their median PT is A$17.40 – Refinitiv data
    ** Stock has fallen 10.8% this year, as of last close 

    

 (Reporting by Echha Jain in Bengaluru)
 ((Echha.jain@thomsonreuters.com))