Morgans assesses The Star Entertainment Group's focus on costs resulted in a better-than-expected operating performance despite revenues being impacted by visitation caps and limited domestic tourism.

The broker expects asset sales, deleveraging and the end to equity contributions at Queens' Wharf Brisbane will see the company de-lever the balance sheet ahead of benefits from the vaccine roll-out.

Morgans adjusts FY21-23 normalised profit forecasts by around 40%, -3% and 3%, respectively. The target price is increased to $4.14 from $3.71 and the Add rating is maintained.

Sector: Consumer Services.

Target price is $4.14.Current Price is $3.69. Difference: $0.45 - (brackets indicate current price is over target). If SGR meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2021 Acquisdata Pty Ltd., source FN Arena