EVT shares lift as Morgan Stanley raises target price by 27%
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The news: Shares in cinema and hospitality group EVT are trading higher as analysts at Morgan Stanley raised its price target by 27%.
The numbers: EVT’s share price was up 3.04% to $15.6 at 3:42pm AEST, representing a 29.3% rise over the last 12 months.
This morning Morgan Stanley raised its target price on the stock from $15 to $19, describing the stock as “underappreciated and undervalued” in an analyst note.
The context: The analysts expect box office supply to return to pre-COVID levels in calendar year 2026, which would be about a 22% increase from calendar year 2024 to 2026.
They also said that consensus underestimates the operating leverage in the cinema business and have set EBITDA forecasts for FY25 3% higher and for FY26 at 20% higher.
What they said: “We think consensus is underestimating the meaningful recovery in earnings in the cinema business, which is underway, but early stage, and we think should deliver meaningful positive EPS revisions over the next three years,” the research note said.
"Through collaboration with our global and local colleagues, we highlight where our positive view is different to consensus."
The source: Morgan Stanley research
