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AAD - UBS rates the stock as Sell
BY BROKER NEWS - 21/12/2017 | VIEW MORE BROKER UPDATES

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AAD - ARDENT LEISURE GROUP


The company has divested its bowling & entertainment division to Quadrant Private Equity for $160m. The asset sale will allow the company to deploy capital into other divisions which are either higher returning and/or are in a turnaround state, UBS suggests.

The broker removes this division from forecasts and reduces the tax rate on US earnings to 21%. As a result forecasts for earnings per share are increased by 9% from FY19 onwards.

Given the risk to the margin turnaround at Main Event, the broker maintains a Sell rating. Target is raised to $1.85 from $1.45.

Sector: Consumer Services.

Target price is $1.85.Current Price is $1.93. Difference: ($0.08) - (brackets indicate current price is over target). If AAD meets the UBS target it will return approximately -4% (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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