Macquarie is adjusting first/second half earnings split for Sealink Travel Group to account for lockdowns and the timing of recovery in activity.
Lockdowns have affected the first half, with Sydney-Adelaide flight capacity down -39% for the fourth quarter.
Yet, in the second half, flight capacity is up 48% compared with the prior corresponding half. The broker retains a Neutral rating on valuation and $7.85 target price.
Sector: Consumer Services.
Target price is $7.85.Current Price is $7.33. Difference: $0.52 – (brackets indicate current price is over target). If SLK meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
