Credit Suisse has a base case for a 3-month shutdown of the company’s casinos. Crown Resorts has formally announced that 95% of staff will be stood down.
Liquidity has improved, but this was never of concern for the broker. The interim dividend will be paid.
Management considers the settlement risk to Sydney apartment sales is low, given the profile of the buyers.
Credit Suisse models modest recovery in FY21 and FY22 for the Melbourne and Perth casinos. Outperform maintained. Target rises to $12 from $11.
Sector: Consumer Services.
Target price is $12.00.Current Price is $8.67. Difference: $3.33 – (brackets indicate current price is over target). If CWN meets the Credit Suisse target it will return approximately 28% (excluding dividends, fees and charges – negative figures indicate an expected loss).
