Brokerages trim earnings forecast for NZ's SkyCity Entertainment

Skycity Entertainment

10/12/2023 23:36

(Updates)
    ** Morningstar and Macquarie cut their earnings forecast for
New Zealand's tourism and entertainment firm SkyCity
Entertainment  SKC.NZ  
    ** Morningstar lowers FY24 EBITDA forecast by 8% to NZ$289
mln ($176.32 mln), below the co's updated guidance of NZ$290
mln-NZ$310 mln
    ** Says brokerage's updated EBITDA forecast includes a
10-day closure of co's New Zealand (NZ) properties which is not
included in co's guidance
    ** Macquarie cuts FY24 and FY25 EBITDA forecasts for SKC by
7% and 8%, respectively, considering softer trading across
properties, among others
        ** Macquarie also cuts price target to NZ$2.75 from
NZ$3.05
  
    ** "Fiscal 2024 is shaping up to be more challenged than we
and the company initially anticipated" - Morningstar 
    ** Four of six analysts rate the stock "Buy" or higher, one
"Hold" and one "Sell"; their median PT is NZ$3.08 – LSEG data
    ** Shares of SKC up as much as 0.6% to NZ$1.800
    ** SKC stock down 24.5% YTD as of last close

    


($1 = 1.6391 New Zealand dollars)

 (Reporting by Echha Jain in Bengaluru; Editing by Susan Fenton)
 ((Echha.jain@thomsonreuters.com))