Star Entertainment's earnings landed within a pre-announced range, down -87% due to the Sydney lockdown. Since Sydney's re-opening, trading has been brisk, Morgans notes, as customers make up for lost time. 

20%-plus year on year sales growth has persisted into the second half. The picture is more subdued in Brisbane, but this seems likely to normalise, the broker suggests.

The broker has made no major forecast changes, expecting 90% of FY earnings to be captured in the second half. A lower valuation multiple leads to a cut in target to $4.00 from $4.20, Add retained

Sector: Consumer Services.

Target price is $4.20.Current Price is $3.57. Difference: $0.63 - (brackets indicate current price is over target). If SGR meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2022 Acquisdata Pty Ltd., source FN Arena