Analyst Angela Sutcliffe from Morgan Stanley maintained a Buy rating on Event Hospitality & Entertainment Ltd. and decreased the price target to A$18.00 from A$19.00.
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Angela Sutcliffe’s rating is based on a combination of factors that suggest potential growth for Event Hospitality & Entertainment Ltd. Despite a slight miss in FY25 results compared to market expectations, the company’s long-term outlook remains promising. Sutcliffe anticipates a significant recovery in cinema earnings by FY26, driven by a return to pre-COVID levels of box office releases, which is expected to boost revenue substantially.
Additionally, the company’s property portfolio remains stable, with potential catalysts that could enhance its valuation. The proposed acquisition of Pro-Invest is seen as a strategic move to expand market opportunities in the hotel segment, with several new or refurbished properties expected to come online in the coming years. These factors contribute to Sutcliffe’s optimistic view, supporting her Buy rating with a price target of A$18 per share, indicating a 23% upside potential.