Credit Suisse believes solid gaming demand will support earnings, with domestic premium mass business particularly robust in Sydney. On the Gold Coast, where there have been no pandemic-related shutdowns in the current half-year, January-February revenue was up in high single digits.
The broker believes the company can incrementally retire debt in the second half amid upgraded earnings. Queen’s Wharf is on track for opening in 2022 although the broker lowers estimates for FY23 to reflect the drag on timing associated with the ramp up of the venue.
Neutral retained. Target is raised to $4.00 from $3.85.
Sector: Consumer Services.
Target price is $4.00.Current Price is $3.97. Difference: $0.03 – (brackets indicate current price is over target). If SGR meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
