Deutsche Bank considers the Queensland government’s call for registrations of interest to develop a global tourism hub on the Gold Coast a minor negative for Star Entertainment.
Such a hub would incorporate a second casino licence and the government appears further ahead in finding a suitable site and additional slot licenses than the broker first appreciated.
Deutsche Bank believes the market is saturated from a gaming capacity perspective, especially once the Queen’s Wharf project is completed.
The broker also suspects the government may use the process to extract additional concessions from Star. Buy rating maintained. Target is $5.60.
Sector: Consumer Services.
Target price is $5.60.Current Price is $4.41. Difference: $1.19 – (brackets indicate current price is over target). If SGR meets the Deutsche Bank target it will return approximately 21% (excluding dividends, fees and charges – negative figures indicate an expected loss).
