J.P. Morgan said it has raised its FY21 estimate for Star Entertainment Group’s EBITDA by 10.7 percent due to stronger revenue from Queensland and better margins. However, it has downgraded the stock from overweight to neutral with a price target of A$3.50.
For Crown Resorts, the firm has raised its normalized EBITDA forecast by 18.8 percent. That’s mainly due to technical reasons as it reallocated 1H21 closure costs to significant items. It retails a neutral rating with a new price target of $8.10.
The world is bouncing back, or at least coming to grips with the fact that going forward not much will be the same as before. Commendably, this industry quickly understood the need to adapt to a new normal, and that the days of targeting the low hanging fruit of the VIP sector are gone.
Over the years, many of the answers have been remarkably prescient in their forecasts for the near-term direction of Asia’s gaming industry. However, we can safely say that no one came anywhere close to guessing what 2020 may have had in store.