Star Entertainment's 1H earnings (EBITA) missed forecasts by Morgans and consensus by -8% and -16%, respectively, due to a tough operating environment.

The broker notes the 1H was impacted by higher interest rates and inflationary pressures on the customer, along with the safer gambling measures which were implemented over the period.

While the analyst's earnings forecast drops by -14% in FY24, a 12% rise occurs in FY25 after the inclsion of contributions from Queen's Wharf Brisbane.

The Add rating and 70c target are unchanged.

Sector: Consumer Services.

Target price is $0.70.Current Price is $0.52. Difference: $0.18 - (brackets indicate current price is over target). If SGR meets the Morgans target it will return approximately 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2024 Acquisdata Pty Ltd., source FN Arena