Credit Suisse reinstates coverage on Star Entertainment, noting its conservative valuation compared to consensus accounts for assumed reduced discretionary spending in FY24, as well as a potential $450m in fines.
The broker also predicts the regulator will install an independent monitor for two years that will make it difficult for Star Entertainment to attract VIP players. Credit Suisse assumes the company will not resume international VIP play until FY25.
The broker reinitiates with a Neutral rating and a target price of $2.95.
Sector: Consumer Services.
Target price is $2.95.Current Price is $2.68. Difference: $0.27 – (brackets indicate current price is over target). If SGR meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
