Macquarie reassesses the Sydney domestic tables market, given the completion of Sovereign Resort and competition from Crown Sydney ((CWN)) in early 2021.
The broker concludes, with improving cash flow, moderating leverage and an eventual earnings recovery Star Entertainment’s valuation is attractive.
The company will provide its Covid-19 update and FY20 result on August 20. Target is reduced to $3.70 from $3.85. Outperform retained.
Sector: Consumer Services.
Target price is $3.70.Current Price is $2.70. Difference: $1.00 – (brackets indicate current price is over target). If SGR meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges – negative figures indicate an expected loss).
