As correctly predicted by Credit Suisse last year, suitor Blackstone has returned with a higher offer for the whole of Crown Resorts. Today’s increase in price target, to $13.25 from $13, is simply a reflection of Blackstone’s return to the table.
Note: Blackstone’s binding offer is only for at least $13.10 per share, but Credit Suisse suggests Crown’s value will only grow from here, hence the higher price target (also showing the broker’s confidence).
There still is a chance of competing bidders announcing themselves, the broker comments. Outperform. Minor adjustments have been made to forecasts.
Sector: Consumer Services.
Target price is $13.25.Current Price is $12.59. Difference: $0.66 – (brackets indicate current price is over target). If CWN meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
