Crown Resorts has received a takeover proposal from Wynn Resorts, from which Wynn Resorts has abruptly walked away. Ahead of this latest development, Credit Suisse believed the proposed price of $14.75 a share was good value, surpassing its valuation by 30%.
There is no material synergy, Credit Suisse assesses, but Australia is considered an attractive gambling market which has shown modest growth for 20 years.
The broker also suggests it is unlikely that Star Entertainment ((SGR)) will put forward a counter proposal. Neutral maintained. Target is raised to $15.00 from $11.40.
Sector: Consumer Services.
Target price is $15.00.Current Price is $12.81. Difference: $2.19 – (brackets indicate current price is over target). If CWN meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).
