Citi upgrades Event Hospitality as reopening to boost entertainment demand

EVT

20/09/2021 23:19

** Citi upgrades rating on Event Hospitality and
Entertainment  EVT.AX  to "buy" from "neutral", lifts price
target to A$17.70 from A$13.45 
    ** Brokerage expects EVT to benefit from pent-up demand for
leisure activities as rising vaccination rate allows for easing
of COVID-19 restrictions
    ** "Expect increased demand for EVT's businesses when state
borders reopen" - Citi
    ** Brokerage anticipates cost management to deliver cost
benefits, which could support EBITDA margins in the short to
medium term
    ** Sees Disney's  DIS.N  announcement on an exclusive
theatrical release window for its remainder of 2021 film slate
as a positive for EVT's cinema business  urn:newsml:reuters.com:*:nL1N2QC2O9
    ** Brokerage expects EVT to post a loss of A$40.4 mln
($29.29 mln) in FY22, compared with a loss of A$59.8 mln in
FY21; expects EVT to return to profit in FY23
    ** EVT up 52.3% this year, as of last close, compared with
the ASX All Ordinaries index's  .AORD  10% rise

($1 = 1.3793 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com;))