Operating earnings in FY20 were ahead of Credit Suisse estimates. The fourth quarter was supported by strong domestic gaming in Auckland and Hamilton.
The company intends to resume dividends with a final in FY21. Adelaide has reopened and is trading ahead of management’s expectations. There is also strong momentum in online registrations.
Credit Suisse upgrades estimates for FY21-23 and raises the target to $3.00 from $2.85. Outperform retained.
Sector: Consumer Services.
Target price is $3.00. Current Price is $2.48. Difference: $0.52 – (brackets indicate current price is over target). If SKC meets the Credit Suisse target it will return approximately 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
