A trading update at Star Entertainment Group's AGM confirmed challenging trading so far in FY22, which doesn't surprise Morgans, given the facility was shut from June 26 to October 11, 2021. The analyst feels a recovery is imminent with borders reopening.

The broker likes the price achieved for the sale and leaseback of the Treasury buildings in Brisbane and notes the deleveraging impact will be helpful. The Add rating and $4.20 target price are retained.

Sector: Consumer Services.

Target price is $4.20.Current Price is $3.65. Difference: $0.55 - (brackets indicate current price is over target). If SGR meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2021 Acquisdata Pty Ltd., source FN Arena