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VRL - Deutsche Bank rates the stock as Buy
BY BROKER NEWS - 12/12/2016 | VIEW MORE BROKER UPDATES

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VRL - VILLAGE ROADSHOW LIMITED


The stock has underperformed the market materially over the last two months, in large part because of concerns about the impact of the Dreamworld incident on theme parks.

Deutsche Bank notes the impact is difficult to determine but retains a more relevant concern about the high level of gearing and weak cash flow at Village Roadshow.

The broker envisages a need to reduce debt through asset sales or an equity issue and believes the stock has meaningful latent asset value, which could deliver valuation upside through divestments.

Rating is upgraded to Buy from Hold. Target is reduced to $4.75 from $4.90.

Sector: Media.

Target price is $4.75.Current Price is $4.33. Difference: $0.42 - (brackets indicate current price is over target). If VRL meets the Deutsche Bank target it will return approximately 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).



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The content of this information does in no way reflect the opinions of FN Arena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FN Arena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FN Arena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

 

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