CWN – UBS rates the stock as Buy

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Crown Resorts’ AGM update noted Perth gaming was up 16% year on year in the September quarter and non-gaming down -21%. Melbourne is closed, and a Sydney launch is up in the air. The broker is assuming January 1 for now.

Given international borders will likely remain shut for some time, impacting on VIPs, the broker has cut its earnings forecast by -50% in FY21. Target falls to $10.00 from $10.65. But the broker notes the stock is trading at the lowest multiple of invested capital ever seen by an Australian casino, and below Star Entertainment ((SGR)) for the first time.

Buy retained.

Sector: Consumer Services.

Target price is $10.00.Current Price is $8.55. Difference: $1.45 – (brackets indicate current price is over target). If CWN meets the UBS target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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