Risks persist for Australia's EVT cinema business despite 'Barbenheimer' fever - Citi

EVT

02/08/2023 06:53

** Analysts at Citi downgrade their rating on Australian
entertainment and leisure firm EVT Ltd  EVT.AX  to "neutral"
from "buy" citing increasing risks to its cinema business
    ** Brokerage says "current excitement" at the box office
from release of Oppenheimer and Barbie have failed to alleviate
concerns arising from the writers' and actors' strike in
Hollywood
    ** Expects strikes to adversely impact box office in CY24/25
if it continues
    ** Brokerage positive on EVT's hotel business, but adds that
data points to slower recent growth
    ** Brokerage also cuts PT to A$13.30 from A$17.11; cuts FY23
core net profit view by 4.6% to A$72.7 mln ($47.88 mln), and by
~7% to A$98.3 mln for FY24
    ** Two of six analysts rate the stock "buy" or higher, and
four rate it "hold"; their median PT is A$13.50 – Refinitiv data
    ** EVT trading 1.6% lower at A$11.98, as of 0434 GMT; down
4.2% so far this year, as of last close

($1 = 1.5184 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))